External Benefits of Brownfield Redevelopment: An Applied Urban General Equilibrium Analysis

Vermeer Niels and Wouter Vermeulen ()
Additional contact information
Vermeer Niels: CPB Netherlands Bureau for Economic Policy Analysis

Journal of Benefit-Cost Analysis, 2012, vol. 3, issue 3, 33

Abstract: Does brownfield redevelopment warrant government support? We explore several external benefits in an urban general equilibrium framework. Preferences are modelled such that demand for housing units in the city is downward sloping, which yields a more general setup than the extreme open and closed city cases. We shed light on the relative importance of general equilibrium effects of nonmarginal redevelopment projects and we isolate the external benefits of the removal of a local nuisance, the exploitation of agglomeration economies and the preservation of open space at the urban fringe. A numerical application indicates that local nuisance and agglomeration effects may push social returns significantly beyond the value of redeveloped land that accrues to its owner. However, depending on the price elasticity of urban housing demand and the strength of agglomeration economies, the amount of preserved greenfield land may be small and it only generates additional benefits to the extent that direct land use policies fail to internalize its value as open space.

Keywords: brownfield redevelopment; land use externalities; urban general equilibrium; cost-benefit analysis (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/2152-2812.1092 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:jbcacn:v:3:y:2012:i:3:n:6

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/jbca/html

DOI: 10.1515/2152-2812.1092

Access Statistics for this article

Journal of Benefit-Cost Analysis is currently edited by Glenn C. Blomquist and William H. Hoy

More articles in Journal of Benefit-Cost Analysis from De Gruyter
Bibliographic data for series maintained by Peter Golla ().