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- Info
The opportunity cost of coastal land-use controls: An empirical analysis
| Author: |
Parsons, George R.; Wu, Yangru |
| Date: |
1991 |
| Periodical: |
Land Economics |
| Abstract: |
For more than a decade demographers have been documenting the migration of the U. S. population from interior to coastal states. A belief that this trend will persist has led to concern about increased housing and commercial development in coastal areas. Added development brings water pollution and reduces the natural cover of the coastline. Many states have responded to this trend with land-use controls that limit new residential and commercial development on land adjacent to coastal water. Controls such as these have essentially three economic efficiency effects. First, on the positive side, is the preservation of coastal open space and reduction of water pollutants-benefits enjoyed by residents and visitors. Second, and on the negative side, is decreased residential and commercial proximity to the coast-fewer households and businesses can locate near the waterfront. Third, and also on the negative side, is a potential loss of amenities at inland locations. With greater development in inland areas following controls, there may be increased housing density and less preservation of inland natural sites. Another possible effect, which may be positive or negative, is a change in infrastructure highways, sewage services, police services, and so on. If these services, on net, change or the cost of providing them changes, there is yet another efficiency effect. We estimate the cost of the second efficiency effect-displaced residential development or lost access to coastal amenities. We analyze controls recently established in Maryland for the Chesapeake Bay-the Critical Area Program which limits new development in a 1,000 foot buffer zone abutting the water. We consider one county, Anne Arundel, and ignore displaced commercial development. |
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