Vermeer, Niels and Vermeulen, Wouter (2012) External benefits of brownfield redevelopment: an applied urban general equilbirum analysis. SERC Discussion Papers (SERCDP099). Spatial Economics Research Centre, London School of Economics and Political Science, London, UK.
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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.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://www.spatialeconomics.ac.uk/SERC/publication... |
| Additional Information: | © 2012 The Authors |
| Divisions: | Spatial Economics Research Centre |
| Subjects: | H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HT Communities. Classes. Races |
| JEL classification: | R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R52 - Land Use and Other Regulations |
| Date Deposited: | 28 Jul 2014 11:18 |
| Last Modified: | 11 Dec 2024 19:09 |
| Funders: | Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government |
| URI: | http://eprints.lse.ac.uk/id/eprint/58337 |
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