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Analyzing building height restrictions - predicted impacts, welfare costs, and a case study of Bangalore, India

Author

Listed:
  • Bertaud, Alain
  • Brueckner, Jan K.

Abstract

The authors analyze the effects of building height restrictions, providing a concrete welfare cost estimate for the city of Bangalore, India. Relying on several theoretical results, their analysis shows that the welfare cost imposed on its residents by Bangalore's building height restriction ranges between 3 and 6 percent of household consumption. This burden represents a significant share of individual resources, and its presence may push many marginal households into poverty.

Suggested Citation

  • Bertaud, Alain & Brueckner, Jan K., 2004. "Analyzing building height restrictions - predicted impacts, welfare costs, and a case study of Bangalore, India," Policy Research Working Paper Series 3290, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3290
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    References listed on IDEAS

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    2. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
    3. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
    4. Bertaud, Alain & Renaud, Bertrand, 1997. "Socialist Cities without Land Markets," Journal of Urban Economics, Elsevier, vol. 41(1), pages 137-151, January.
    5. Arnott, Richard J. & MacKinnon, James G., 1977. "Measuring the costs of height restrictions with a general equilibrium model," Regional Science and Urban Economics, Elsevier, vol. 7(4), pages 359-375, November.
    6. Pines, David & Sadka, Efraim, 1986. "Comparative statics analysis of a fully closed city," Journal of Urban Economics, Elsevier, vol. 20(1), pages 1-20, July.
    7. Brueckner, Jan K., 1987. "The structure of urban equilibria: A unified treatment of the muth-mills model," Handbook of Regional and Urban Economics,in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 20, pages 821-845 Elsevier.
    8. Wheaton, William C., 1974. "A comparative static analysis of urban spatial structure," Journal of Economic Theory, Elsevier, vol. 9(2), pages 223-237, October.
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    Citations

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    Cited by:

    1. Fran?ois Ortalo-Magn? & Andrea Prat, 2014. "On the Political Economy of Urban Growth: Homeownership versus Affordability," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 154-181, February.
    2. World Bank, 2006. "Urban Land and Housing Markets in the Punjab, Pakistan," World Bank Other Operational Studies 8280, The World Bank.
    3. Kirdan Lees, 2018. "Quantifying the costs of land use regulation: Evidence from New Zealand," Working Papers in Economics 18/01, University of Canterbury, Department of Economics and Finance.
    4. Ortalo-Magné, François & Prat, Andrea, 2007. "The political economy of housing supply: homeowners, workers, and voters," LSE Research Online Documents on Economics 3678, London School of Economics and Political Science, LSE Library.
    5. Bertaud, Alain & Brueckner, Jan K., 2005. "Analyzing building-height restrictions: predicted impacts and welfare costs," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 109-125, March.
    6. Mozart Vitor Serra & David E. Dowall & Diana Motta & Michael Donovan, 2015. "Urban Land Markets and Urban Land Development: an Examination of Three Brazilian Cities: Brasília, Curitiba and Recife," Discussion Papers 0144, Instituto de Pesquisa Econômica Aplicada - IPEA.
    7. Mozart Vitor Serra & David E. Dowall & Diana Motta & Michael Donovan, 2005. "Urban Land Markets and Urban Land Development : an Examination of three Brazilian Cities : Brasília, Curitiba and Recife," Discussion Papers 1082, Instituto de Pesquisa Econômica Aplicada - IPEA.
    8. Marin V. Geshkov & Joseph S. DeSalvo, 2012. "The Effect Of Land-Use Controls On The Spatial Size Of U.S. Urbanized Areas," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 648-675, October.
    9. Buckley, Robert M. & Kalarickal, Jerry, 2004. "Shelter strategies for the urban poor : idiosyncratic and successful, but hardly mysterious," Policy Research Working Paper Series 3427, The World Bank.
    10. World Bank, 2007. "The Evolving Role of World Bank Urban Shelter Projects : Addressing Land Market and Economy-wide Constraints," World Bank Other Operational Studies 12669, The World Bank.
    11. Lall, Somik V. & Suri, Ajay & Deichmann, Uwe, 2005. "Household savings and residential mobility in informal settlements," Policy Research Working Paper Series 3596, The World Bank.
    12. Baker, Judy & Basu, Rakhi & Cropper, Maureen & Lall, Somik & Takeuchi, Akie, 2005. "Urban poverty and transport : the case of Mumbai," Policy Research Working Paper Series 3693, The World Bank.

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