1. The Welfare Effects of Greenbelt Policy: Evidence from England.
- Author
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Koster, Hans R A
- Subjects
GREENBELTS ,HOUSING ,URBAN fringe ,URBAN growth ,TRAFFIC congestion - Abstract
I measure the economic effects of greenbelts that prohibit new construction beyond a predefined urban fringe and therefore act as urban growth boundaries. I focus on England, where 13% of the land is designated as greenbelt land. I provide reduced-form evidence and estimate a quantitative equilibrium model that includes amenities, housing supply, a traffic congestion externality, agglomeration forces, productivity and household location choices. Greenbelt policy generates positive amenity effects, but also strongly reduces housing supply. I find that greenbelts increase welfare because amenity effects are sufficiently strong. At the same time, however, greenbelts decrease housing affordability by limiting housing supply. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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