Unintended Effects of Environmental Policies: The Case of Urban Growth Controls and Agricultural Intensification

Matthew J. Fienup and Andrew J. Plantinga

Land Economics, 2021, vol. 97, issue 2, 261-280

Abstract: When environmental policies do not control decision-making on all margins, they can have unintended effects on the environment. We examine effects of urban growth boundaries (UGBs) on agricultural intensification. A primary goal of a UGB is to preserve open space outside the boundary; however, by eliminating the future rent stream from development, UGBs encourage landowners to adopt more capital-intensive agricultural uses. We empirically estimate UGB effects on intensification rates in Ventura County, California. Difference-in-differences estimates reveal that UGBs increased intensification rates by 16–21 percentage points. In Ventura County, policies designed to preserve open space accelerated its loss and increased agricultural externalities.

JEL-codes: Q15 Q58 (search for similar items in EconPapers)
Date: 2021
Note: DOI: 10.3368/le.97.2.261
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:97:y:2021:i:2:p:261-280

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