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Estimating the effect of land use regulation on land price: At the kink point of building height limits in Fukuoka

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  • Nakajima, Kentaro
  • Takano, Keisuke

Abstract

This study estimates the effect of land use regulation on land price by exploiting the feature of building height limits of the aviation law in Fukuoka, Japan. The law limits the height of a building that is within 4000 meters of an airport to 54.1 m, but when the distance exceeds 4000 meters, the limits are relaxed. Exploiting this regulation feature, we estimate the effect of the regulation on land price using the regression kink design. We find that building height restriction has a significantly negative effect on land price and the magnitude of the effects depends on the stringency of regulation.

Suggested Citation

  • Nakajima, Kentaro & Takano, Keisuke, 2023. "Estimating the effect of land use regulation on land price: At the kink point of building height limits in Fukuoka," Regional Science and Urban Economics, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:regeco:v:103:y:2023:i:c:s016604622300090x
    DOI: 10.1016/j.regsciurbeco.2023.103955
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    Cited by:

    1. Zhang, Junfu, 2023. "JUE Insight: Measuring the Stringency of Land Use Regulation Using a Shadow Price Approach," Journal of Urban Economics, Elsevier, vol. 133(C).

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    More about this item

    Keywords

    Land use regulation; Land price; Building height limits;
    All these keywords.

    JEL classification:

    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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