Environmental Economics

Economic Incentives for Land Use Control

This report performs a theoretical economic analysis of the incentives embodied within a variety of existing and proposed land use control techniques and, then, employs this analytical framework to examine the social desirability of supplementing or replacing the existing body of land use control mechanisms with any of several innovative policies for the regulation of the use of land. Thus, this report first investigates the economic and legal relationships between alternative assignments of property rights in the use of resources and the levels of external effects attributable to the use of these resources. Then, the administrative, legal, economic, and political limitations of the traditional land use control mechanisms of municipal zoning, subdivision regulation building codes, and eminent domain condemnation are examined. Next, a set of basic concepts is developed for the evaluation of the potential economic efficiency and social desirability of any mechaism for the optimal control of external effects or the optimal provision of public facilities. Finally, using these concepts, the potential economic efficiency, legal feasibility, administrative tractability, political acceptability, and social desirability of implementing several innovative and, as yet, relatively untried land use control mechanisms are assessed.
The report contains the following chapters:

    1. Introduction and Executive Summary
    2. The Relationships between Property Rights and Externalities
    3. A Critique of Traditional Land Use Controls
    4. Environmental Quality and the Optimal Control of Market Failure
    5. An Evaluation of the Potential Social Desirability of Alternative Land Use Control Mechanisms
    6. Bibliography

    4. Economic Incentives and Other Innovative Approaches
    Environmental Media:
    c. Land
    Rueter, Frederick H.
    Kushner, Phillip
    EPA Project Officer/ Manager:
    Schaefer, Richard K.
    Geographic Area:
    Study Purpose:
    Empirical Application
    Inventory Record #: EE-0041
  • Participating Organizations

    Research Organization:

    CONSAD Research CorporationAddress: 121 North Highland Avenue
    City: Pittsburgh State: PA ZIP: 15206
    Phone: Fax:
    Funding Organization:
    Environmental Protection Agency, Office of Research and Development,
    Office of Air, Land, and Water Use
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
  • Report Details
    Number of Pages:
    EPA #:
    Grant/Contract #:
  • How to Obtain Report

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    Date Linked: 05/28/2009