THE EFFECT OF A FOREST CONSERVATION REGULATION ON THE VALUE OF SUBDIVISIONS IN MARYLAND

Profit-maximizing land developers are hypothesized to configure subdivisions to minimize the effects of a conservation regulation on developed land values, subject to their expectations about the demand for developed building lots. This hypothesis allows development of a hedonic price model that takes account of production adjustments. The model is applied to the Maryland Forest Conservation Act, which requires developers to retain or plant trees on part of the developed land. Being exempt from the Act allows developers to gain more for the subdivisions they develop: the cost to regulated developers is about six percent of the per-acre price of developed land. The Act has significantly lowered per-acre developed land values in subdivisions with a mixture of townhouses and single-family dwellings. Costs of the Act are reduced by provisions that allow developers to plant trees offsite or to pay fees in lieu of planting.


Issue Date:
2003
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/28575
Total Pages:
34
Series Statement:
Working Paper WP 03-01




 Record created 2017-04-01, last modified 2017-04-04

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)