How do Land Markets Anticipate Regulatory Change? Evidence from Canadian Conservation Policy

Branko Bošković and Linda Nøstbakken

No 5956, CESifo Working Paper Series from CESifo

Abstract: Regulation often evolves, and affected consumers or firms may adjust their behavior in anticipation of potential changes to regulation. Using shifting land use regulation boundaries and oil lease prices from Canada, we estimate the effect of anticipated regulatory change on the value of land. We find that anticipated rezoning decreases the price of unregulated leases. Based on our estimates, not accounting for anticipation underestimates the total cost of the regulation by nearly one-third. Overall, the evidence suggests that anticipation effects are significant and that the cost of anticipated regulation is capitalized into land values.

Keywords: regulation; anticipation; land values; zoning; oil leases; endangered species (search for similar items in EconPapers)
JEL-codes: D44 Q30 Q52 Q58 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp5956.pdf (application/pdf)

Related works:
Working Paper: How do land markets anticipate regulatory change? Evidence from Canadian Conservation policy (2016)
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:ces:ceswps:_5956

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().