Welfare Effects of Anti-Sprawl Policies in the Presence of Urban Decline

This paper extends first-best analysis of anti-sprawl policies, such as development taxes, and examines the welfare effects of development taxes in the presence of urban decline at the city core. We find that anti-sprawl policies generate several important feedbacks within the urban system, generating additional welfare gains and affecting the level of urban decline and suburban sprawl. Further, the optimal development tax exceeds the (first-best) Pigouvian level, irrespective of whether or not revenues are returned lump-sum to all landowners or earmarked for urban decline mitigation.


Issue Date:
2011-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/120272
Published in:
Agricultural and Resource Economics Review, Volume 40, Number 3
Page range:
439-450
Total Pages:
12




 Record created 2017-04-01, last modified 2017-08-26

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