Property tax and farmland use in urban areas: Evidence from the reform in the early 1990s in Japan

Tomomi Miyazaki and Motohiro Sato

Journal of the Japanese and International Economies, 2022, vol. 63, issue C

Abstract: It is often said that farmland conservation in urban areas (i.e., cities and inner suburbs) is not desirable because it hinders the conversion of farmland into residential areas, thereby deterring urbanization. To solve such a problem, the Japanese government rectified the property tax preferential treatment of urban farmland in the 1990s. We utilize this reform as a natural experiment and examine its impact on land use. The empirical results show that the reform did not encourage the conversion of urban farmland into housing lots. This is one of the reasons concerning the shortage of housing supply in urban areas in Japan.

Keywords: Property tax; Land use in urban area; Preferential treatment on farmland; Urbanization (search for similar items in EconPapers)
JEL-codes: H22 H71 R51 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:63:y:2022:i:c:s0889158321000642

DOI: 10.1016/j.jjie.2021.101185

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