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Welfare Economics of Land Use Regulation

Author

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  • Paul Cheshire

    (London School of Economics)

  • Stephen Sheppard

    (Oberlin College)

Abstract

Despite the pervasive nature of land use planning and land use regulation, evaluation of the costs and benefits of these policies has received only limited attention. This paper presents an empirical methodology, based on clear microeconomic foundations, for the evaluation of benefits and costs of land use planning. The technique is applied to the Town and Country Planning System of the UK. Evaluation is presented of gross benefits from several land use planning activities, the net costs of land use planning, and the distributional consequences of these policies. The results show that these welfare and distributional impacts are considerable.

Suggested Citation

  • Paul Cheshire & Stephen Sheppard, 1997. "Welfare Economics of Land Use Regulation," Urban/Regional 9702001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpur:9702001
    Note: Type of Document - Zipped postcsript file; prepared on Windows LaTeX / Scientific Workplace; to print on Postscript; pages: 48 ; figures: Included in file. This is No. 42 of the series Research Papers in Environmental and Spatial Analysis. Comments welcome.
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    References listed on IDEAS

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    1. Brueckner, Jan K., 1995. "Strategic control of growth in a system of cities," Journal of Public Economics, Elsevier, vol. 57(3), pages 393-416, July.
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    Citations

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    Cited by:

    1. Liv Osland & Inge Thorsen, 2008. "Effects on Housing Prices of Urban Attraction and Labor-Market Accessibility," Environment and Planning A, , vol. 40(10), pages 2490-2509, October.
    2. Paul C. Cheshire & Christian A. L. Hilber, 2008. "Office Space Supply Restrictions in Britain: The Political Economy of Market Revenge," Economic Journal, Royal Economic Society, vol. 118(529), pages 185-221, June.
    3. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," CPB Discussion Paper 191, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Wouter Vermeulen, 2017. "Agglomeration externalities and urban growth controls," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 59-94.
    5. Paul Cheshire & Stephen Sheppard, 2005. "Introducing Price Signals into Land Use Planning Decision-making - a Proposal," ERSA conference papers ersa05p42, European Regional Science Association.
    6. G Bramley, 1999. "Housing Market Adjustment and Land-Supply Constraints," Environment and Planning A, , vol. 31(7), pages 1169-1188, July.
    7. Paul Cheshire & Stephen Sheppard, 2002. "Taxes Versus Regulation: The Welfare Impacts of Policies for Containing Sprawl," ERES eres2002_132, European Real Estate Society (ERES).
    8. Ahlfeldt, Gabriel M., 2008. "If Alonso was Right: Residual Land Price, Accessibility and Urban Attraction," MPRA Paper 11707, University Library of Munich, Germany.
    9. Glen Bramley & Chris Leishman, 2005. "Planning and Housing Supply in Two-speed Britain: Modelling Local Market Outcomes," Urban Studies, Urban Studies Journal Limited, vol. 42(12), pages 2213-2244, November.
    10. Paul Cheshire & Stephen Sheppard, 2004. "The Introduction of Price Signals into Land Use Planning," Urban/Regional 0410002, University Library of Munich, Germany.
    11. Paul Cheshire, 2018. "Broken Market or Broken Policy? The Unintended Consequences of Restrictive Planning," National Institute Economic Review, National Institute of Economic and Social Research, vol. 245(1), pages 9-19, August.
    12. Jan Rouwendal & Willemijn Weijschede- v.d. Straaten, 2008. "The costs and benefits of providing open space in cities," CPB Discussion Paper 98, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Niels Vermeer & Wouter Vermeulen, 2011. "External Benefits of Brownfield Redevelopment: An Applied Urban General Equilibrium Analysis," CPB Discussion Paper 178, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Marco Locurcio & Pierluigi Morano & Francesco Tajani & Felicia Di Liddo, 2020. "An Innovative GIS-Based Territorial Information Tool for the Evaluation of Corporate Properties: An Application to the Italian Context," Sustainability, MDPI, vol. 12(14), pages 1-29, July.
    15. Liv Osland & Inge Thorsen & Jens Petter Gitlesen, 2004. "The impact of labour market accessibility on housing prices," ERSA conference papers ersa04p355, European Regional Science Association.

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    More about this item

    Keywords

    Land Use Planning; Housing Markets; Zoning; Regulation;
    All these keywords.

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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