Measuring the Stringency of Land Use Regulation: The Case of China's Building Height Limits

Jan Brueckner, Shihe Fu (), Yizhen Gu and Junfu Zhang

The Review of Economics and Statistics, 2017, vol. 99, issue 4, 663-677

Abstract: This paper develops a new approach for measuring the stringency of a major form of land use regulation, building height restrictions, and applies it to an extraordinary data set of land-lease transactions from China. Our theory shows that the elasticity of land price with respect to the floor area ratio (FAR), a building height indicator, is a measure of the regulation's stringency (the extent to which FAR is kept below the free-market level). Using a national sample, estimation allowing this elasticity to be city-specific shows variation in the stringency of FAR regulation across Chinese cities. Single-city estimation for Beijing shows that stringency varies with site characteristics.

Date: 2017
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Related works:
Working Paper: Measuring the Stringency of Land Use Regulation: The Case of China's Building Height Limits (2017)
Working Paper: Measuring the Stringency of Land-Use Regulation: The Case of China's Building-Height Limits (2016)
Working Paper: Measuring the Stringency of Land-Use Regulation: The Case of China's Building-Height Limits (2016)
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