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Cost‐Benefit Analysis of Local Land Use Allocation Decisions
Author(s) -
McDonald John F.
Publication year - 2001
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00217
Subject(s) - jurisdiction , revenue , business , cost–benefit analysis , land use , economics , public economics , environmental economics , natural resource economics , finance , ecology , civil engineering , political science , law , biology , engineering
This paper presents standard microeconomic models that are designed to be used in the cost‐benefit analysis of local land use decisions. The models connect these allocation decisions to outcomes in the urban land and labor markets so that costs and benefits can be measured. Benefits to the local jurisdiction of allocating land to industrial use exist if unemployed workers are employed, land values increase, or local tax revenues increase beyond the amount needed to provide the additional public services required.