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Game of zones: the economics of conservation areas

Ahlfeldt, Gabriel M., Moeller, Kristoffer, Waights, Sevrin and Wendland, Nicolai (2013) Game of zones: the economics of conservation areas. SERC Discussion Papers (SERCDP0143). Spatial Economics Research Centre, London School of Economics and Political Science, London, UK.

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Abstract

Provided there are positive external benefits attached to the historic character of buildings, owners of properties in designated conservation areas benefit from a reduction in uncertainty regarding the future of their area. At the same time, the restrictions put in place to ensure the preservation of the historic character limit the degree to which properties can be altered and thus impose a cost to their owners. We test a simple theory of the designation process in which we postulate that the optimal level of designation is chosen so as to Pareto-maximize the welfare of local owners. The implication of the model is that a) an increase in preferences for historic character should increase the likelihood of a designation, and b) new designations at the margin should not be associated with significant house price capitalization effects. Our empirical results are in line with these expectations.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2013 The Authors
Divisions: Grantham Research Institute
Spatial Economics Research Centre
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household
R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R40 - General
R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R58 - Regional Development Policy
Sets: Research centres and groups > Grantham Research Institute on Climate Change and the Environment
Research centres and groups > Spatial Economics Research Centre
Date Deposited: 28 Jul 2014 12:31
Last Modified: 20 Feb 2019 03:44
Funders: Economic and Social Research Council, Department for Business, Innovation & Skills (BIS), Welsh Assembly Government
URI: http://eprints.lse.ac.uk/id/eprint/58349

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