 The role of demand in land re-developmentFelipe Carozzi Journal of Urban Economics, 2020, vol. 117, issue C Abstract: Vacant, previously-developed land in cities can generate negative externalities on surrounding areas, and is often the target of policies to promote re-development. This paper provides estimates of the price sensitivity of land re-development, a crucial parameter for the success of these policies. My estimates measure how prices affect long-run conversion of unused or underused previously developed land in England. The empirical strategy uses school test scores and admission district boundaries in a boundary discontinuity design to generate variation in housing demand that is orthogonal to re-development costs. Results show that the probability of re-development is effectively sensitive to housing prices. Estimates indicate that a 1% increase in prices leads to a 0.07 percentage point reduction in the fraction of hectares containing brownfield land. Price differences or substantial subsidies could lead to a significant amount of re-development in the long run. This is confirmed by observed land use changes between 2007 and 2011 being disproportionately concentrated in high price areas. Keywords: Land re-development; Brownfields; Land supply (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:117:y:2020:i:c:s0094119020300152 DOI: 10.1016/j.jue.2020.103244 Access Statistics for this article Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange More articles in Journal of Urban Economics from Elsevier |
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