Is Water Policy Limiting Residential Growth? Evidence from California
Rapid population growth and increasing costs of new water supplies have led state and local authorities throughout the American West to institute regulations conditioning the approval of residential development on the adequacy of long-term water availability. Using a measure of local water screening policies from an original survey, this paper examines the effects of these policies on residential housing growth in California from 1994 to 2003. Random- and fixed-effects panel regressions find jurisdictions with local policies to have significantly slower residential growth. These water policy effects are distinct from effects of general growth control measures. Water impact fees, meanwhile, do not significantly slow construction. Water screening policies are not associated with a higher incidence of conservation policies, raising the possibility that some communities may be using water screening as a tool to limit growth, while maintaining high per capita water availability and low water prices. Although such practices may be locally efficient under existing water rights law, in which communities are the rights-holders, they raise the possibility of broader social inefficiencies in the management of water resources. Absent a change in water rights, introduction of explicit buy-in fees for new construction may be a preferred strategy relative to ad hoc administrative review.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Mar 2005|
|Contact details of provider:|| Postal: 500 Washington Street, Suite 600, San Francisco, California 94111|
Phone: (415) 291-4400
Fax: (415) 291-4401
Web page: http://www.ppic.org/main/home.asp
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ellen Hanak, 2005. "Water for Growth: California's New Frontier," PPIC Research Reports, Public Policy Institute of California, number wtrgth.
- Gregory Burge & Keith Ihlanfeldt, 2006. "The Effects Of Impact Fees On Multifamily Housing Construction," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 5-23.
- Engle, Robert & Navarro, Peter & Carson, Richard, 1992. "On the theory of growth controls," Journal of Urban Economics, Elsevier, vol. 32(3), pages 269-283, November.
- Larry D. Singell & Jane H. Lillydahl, 1990. "An Empirical Examination of the Effect of Impact Fees on the Housing Market," Land Economics, University of Wisconsin Press, vol. 66(1), pages 82-92.
- Ellen Hanak & Ada Chen, 2007.
"Wet Growth: Effects Of Water Policies On Land Use In The American West,"
Journal of Regional Science,
Wiley Blackwell, vol. 47(1), pages 85-108.
- Ellen Hanak & Ada Chen, 2005. "Wet Growth: Effects of Water Policies on Land Use in the American West," PPIC Working Papers 2005.10, Public Policy Institute of California.
When requesting a correction, please mention this item's handle: RePEc:ppi:ppicwp:2005.01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.