IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v83y2007i4p458-474.html
   My bibliography  Save this article

Regulation, Open Space, and the Value of Land Undergoing Residential Subdivision

Author

Listed:
  • Ian Hardie
  • Erik Lichtenberg
  • Cynthia J. Nickerson

Abstract

We investigate the effects of forest conservation requirements and zoning on the value of land undergoing subdivision. Land prices are increasing in the percentage of subdivision acreage developers are required to keep in forest, suggesting that forest conservation regulations increase the amounts of forested open space that developers provide. Benefits from open-space amenities remain largely internal to the subdivision, so that land market incentives mitigate the justification for open space preservation policies. Consistent with theoretical predictions that zoning promotes sprawl, we find that minimum-lot-size zoning constrains developers of closer-in subdivisions where public sewers are available.

Suggested Citation

  • Ian Hardie & Erik Lichtenberg & Cynthia J. Nickerson, 2007. "Regulation, Open Space, and the Value of Land Undergoing Residential Subdivision," Land Economics, University of Wisconsin Press, vol. 83(4), pages 458-474.
    • Handle: RePEc:uwp:landec:v:83:y:2007:i:4:p:458-474
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/83/4/458
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Speyrer, Janet Furman, 1989. "The Effect of Land-Use Restrictions on Market Values of Single-Family Homes in Houston," The Journal of Real Estate Finance and Economics, Springer, vol. 2(2), pages 117-130, June.
    2. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, September.
    3. Wallace, Nancy E., 1988. "The market effects of zoning undeveloped land: Does zoning follow the market?," Journal of Urban Economics, Elsevier, vol. 23(3), pages 307-326, May.
    4. Thorsnes, Paul, 2000. "Internalizing Neighborhood Externalities: The Effect of Subdivision Size and Zoning on Residential Lot Prices," Journal of Urban Economics, Elsevier, vol. 48(3), pages 397-418, November.
    5. C H Yang & M Fujita, 1983. "Urban Spatial Structure with Open Space," Environment and Planning A, , vol. 15(1), pages 67-84, January.
    6. Bucholtz, Shawn & Geoghegan, Jacqueline & Lynch, Lori, 2003. "Capitalization of Open Spaces into Housing Values and the Residential Property Tax Revenue Impacts of Agricultural Easement Programs," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 32(1), pages 1-13, April.
    7. JunJie Wu & Richard M. Adams & Andrew J. Plantinga, 2004. "Amenities in an Urban Equilibrium Model: Residential Development in Portland, Oregon," Land Economics, University of Wisconsin Press, vol. 80(1), pages 19-32.
    8. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    9. Paul Thorsnes, 2000. "Internalizing neighborhood externalities: Subdivision size, zoning, and residential lot prices," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(2), pages 366-366, May.
    10. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
    11. Hans R. Isakson & Mark D. Ecker, 2001. "An Analysis of the Influence of Location in the Market for Undeveloped Urban Fringe Land," Land Economics, University of Wisconsin Press, vol. 77(1), pages 30-41.
    12. Thorsnes, Paul & McMillen, Daniel P, 1998. "Land Value and Parcel Size: A Semiparametric Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 17(3), pages 233-244, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferris, Jeffrey & David, Newburn, 2014. "Residential Development And The Effect Of Forest Conservation Policy," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170337, Agricultural and Applied Economics Association.
    2. Reisig, Dawson & Mullan, Katrina & Hansen, Andrew & Powell, Scott & Theobald, David & Ulrich, Rachel, 2021. "Natural amenities and low-density residential development: Magnitude and spatial scale of influences," Land Use Policy, Elsevier, vol. 102(C).
    3. Maria A. Cunha‐e‐Sá & Sofia F. Franco, 2017. "The Effects of Development Constraints on Forest Management at the Urban‐Forest Interface," American Journal of Agricultural Economics, John Wiley & Sons, vol. 99(3), pages 614-636, April.
    4. Elizabeth Kopits & Virginia McConnell & Margaret Walls, 2007. "The Trade-off between Private Lots and Public Open Space in Subdivisions at the Urban-Rural Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1191-1197.
    5. B. James Deaton & Richard J. Vyn, 2015. "The Effect of Ontario's Greenbelt on the Price of Vacant Farmland," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 185-208, June.
    6. Marisa J. Mazzotta & Elena Besedin & Ann E. Speers, 2014. "A Meta-Analysis of Hedonic Studies to Assess the Property Value Effects of Low Impact Development," Resources, MDPI, vol. 3(1), pages 1-31, January.
    7. Cotteleer, Geerte & van Kooten, G. Cornelis, 2012. "Expert opinion versus actual transaction evidence in the valuation of non-market amenities," Economic Modelling, Elsevier, vol. 29(1), pages 32-40.
    8. Richard J. Vyn, 2015. "The Effect of Agricultural Zoning on Rural Residential Property Values: An Application to Ontario's Greenbelt," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 281-307, September.
    9. Lu, Chen-Fu & Cheng, Chia-Yi, 2023. "Does the change of agricultural zoning policy achieve farmland protection in Taiwan?," Land Use Policy, Elsevier, vol. 126(C).
    10. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    11. Lichtenberg, Erik & Tra, Constant & Hardie, Ian, 2007. "Land use regulation and the provision of open space in suburban residential subdivisions," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 199-213, September.
    12. Richard J. Vyn, 2012. "Examining for Evidence of the Leapfrog Effect in the Context of Strict Agricultural Zoning," Land Economics, University of Wisconsin Press, vol. 88(3), pages 457-477.
    13. Yong Chen & David J. Lewis & Bruce Weber, 2016. "Conservation Land Amenities And Regional Economies: A Postmatching Difference-In-Differences Analysis Of The Northwest Forest Plan," Journal of Regional Science, Wiley Blackwell, vol. 56(3), pages 373-394, June.
    14. Lichtenberg, Erik, 2008. "Open Space and Urban Sprawl: The Case of the Maryland Forest Conservation Act," Working Papers 37812, University of Maryland, Department of Agricultural and Resource Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lichtenberg, Erik & Tra, Constant & Hardie, Ian, 2007. "Land use regulation and the provision of open space in suburban residential subdivisions," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 199-213, September.
    2. Lichtenberg, Erik, 2011. "Open Space and Urban Sprawl: The Effects of Zoning and Forest Conservation Regulations in Maryland," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), pages 1-12, December.
    3. Lichtenberg, Erik, 2008. "Open Space and Urban Sprawl: The Case of the Maryland Forest Conservation Act," Working Papers 37812, University of Maryland, Department of Agricultural and Resource Economics.
    4. McConnell, Virginia & Walls, Margaret & Kopits, Elizabeth, 2006. "Zoning, TDRs and the density of development," Journal of Urban Economics, Elsevier, vol. 59(3), pages 440-457, May.
    5. Guillaume POUYANNE & Frederic GASCHET, 2013. "The Effect Of Current And Future Land Use On House Prices," ERSA conference papers ersa13p249, European Regional Science Association.
    6. Hee Jin Yang & Jihoon Song & Mack Joong Choi, 2016. "Measuring the Externality Effects of Commercial Land Use on Residential Land Value: A Case Study of Seoul," Sustainability, MDPI, vol. 8(5), pages 1-15, April.
    7. Liang Peng & Thomas Thibodeau, 2012. "Government Interference and the Efficiency of the Land Market in China," The Journal of Real Estate Finance and Economics, Springer, vol. 45(4), pages 919-938, November.
    8. Fakhruddin, Fahmida & Espey, Molly, 2003. "Living On The Edge: Residential Property Values In The Urban/Rural Fringe?," 2003 Annual meeting, July 27-30, Montreal, Canada 22072, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Caruso, Geoffrey & Peeters, Dominique & Cavailhes, Jean & Rounsevell, Mark, 2007. "Spatial configurations in a periurban city. A cellular automata-based microeconomic model," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 542-567, September.
    10. Rayman Mohamed, 2009. "Why Do Residential Developers Prefer Large Exurban Lots? Infrastructure Costs and Exurban Development," Environment and Planning B, , vol. 36(1), pages 12-29, February.
    11. Jay Mittal, 2017. "Valuing Visual Accessibility of Scenic Landscapes in a Single Family Housing Market: A Spatial Hedonic Approach," ERES eres2017_1, European Real Estate Society (ERES).
    12. Cho, Seong-Hoon & Poudyal, Neelam C. & Roberts, Roland K., 2008. "Spatial analysis of the amenity value of green open space," Ecological Economics, Elsevier, vol. 66(2-3), pages 403-416, June.
    13. Coisnon, Thomas & Oueslati, Walid & Salanié, Julien, 2014. "Urban sprawl occurrence under spatially varying agricultural amenities," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 38-49.
    14. Camille Régnier, 2020. "Open space preservation in an urbanization context," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 443-458, June.
    15. Wu, JunJie & Gopinath, Munisamy, 2005. "How Do Location Decisions of Firms and Households Affect Economic Development in Rural America?," 2005 Annual meeting, July 24-27, Providence, RI 19229, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Delores Conway & Christina Li & Jennifer Wolch & Christopher Kahle & Michael Jerrett, 2010. "A Spatial Autocorrelation Approach for Examining the Effects of Urban Greenspace on Residential Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 150-169, August.
    17. Bun Lee & Eui-Chul Chung & Yong Kim, 2004. "Dwelling Age, Redevelopment, and Housing Prices: The Case of Apartment Complexes in Seoul," The Journal of Real Estate Finance and Economics, Springer, vol. 30(1), pages 55-80, October.
    18. Marion Girard, 2017. "Organisation spatiale et densités urbaines : une application à l'agglomération du Grand Dijon," Working Papers hal-01630439, HAL.
    19. Richard J. Vyn, 2012. "Examining for Evidence of the Leapfrog Effect in the Context of Strict Agricultural Zoning," Land Economics, University of Wisconsin Press, vol. 88(3), pages 457-477.
    20. Zipp, Katherine Y. & Lewis, David J. & Provencher, Bill, 2017. "Does the conservation of land reduce development? An econometric-based landscape simulation with land market feedbacks," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 19-37.

    More about this item

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:83:y:2007:i:4:p:458-474. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.