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THE ECONOMICS OF LAND-ZONING

Renan Goetz and David Zilberman ()

No 21828, 2000 Annual meeting, July 30-August 2, Tampa, FL from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Land-use restrictions are frequently applied to separate polluting from non-polluting activities. In contrast to the existing literature, we incorporate spatial and intertemporal aspects of the problem simultaneously and determine the border of the zones endogenously. The results, based on a two-stage optimization method, show that non-spatially differentiated Pigouvian taxes on the final emissions are able to establish the socially optimal outcome. Second-best instruments alone, such as a spatially differentiated tax on inputs or outputs are not able to support the socially optimal outcome and need to be complemented by land-zoning or land-use taxes. We compare the efficiency of different spatial environmental policies such as land-use taxes or land zoning. The necessary changes required to transform a spatially optimal, yet static, environmental policy into an intertemporally and spatially optimal environmental policy are presented and discussed.

Keywords: Environmental Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 27
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea00:21828

DOI: 10.22004/ag.econ.21828

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