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Unintended Effects of Environmental Policies: The Case of Urban Growth Controls and Agricultural Intensification

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  • Matthew J. Fienup
  • Andrew J. Plantinga

Abstract

When environmental policies do not control decision-making on all margins, they can have unintended effects on the environment. We examine effects of urban growth boundaries (UGBs) on agricultural intensification. A primary goal of a UGB is to preserve open space outside the boundary; however, by eliminating the future rent stream from development, UGBs encourage landowners to adopt more capital-intensive agricultural uses. We empirically estimate UGB effects on intensification rates in Ventura County, California. Difference-in-differences estimates reveal that UGBs increased intensification rates by 16–21 percentage points. In Ventura County, policies designed to preserve open space accelerated its loss and increased agricultural externalities.

Suggested Citation

  • Matthew J. Fienup & Andrew J. Plantinga, 2021. "Unintended Effects of Environmental Policies: The Case of Urban Growth Controls and Agricultural Intensification," Land Economics, University of Wisconsin Press, vol. 97(2), pages 261-280.
    • Handle: RePEc:uwp:landec:v:97:y:2021:i:2:p:261-280
    Note: DOI: 10.3368/le.97.2.261
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    File URL: http://le.uwpress.org/cgi/reprint/97/2/261
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    Cited by:

    1. Xiaoqiang Shen & Jinping Wang & Xiaobin Zhang & Hanlu Bei, 2022. "Review of Research on Non-Conforming Urban Expansion: Measurement, Interpretation, and Governance," Land, MDPI, vol. 11(12), pages 1-21, November.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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