RT Journal Article
SR Electronic
T1 Unintended Effects of Environmental Policies: The Case of Urban Growth Controls and Agricultural Intensification
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 261
OP 280
DO 10.3368/le.97.2.261
VO 97
IS 2
A1 Fienup, Matthew J.
A1 Plantinga, Andrew J.
YR 2021
UL http://le.uwpress.org/content/97/2/261.abstract
AB When environmental policies do not control decision-making on all margins, they can have unintended effects on the environment. We examine effects of urban growth boundaries (UGBs) on agricultural intensification. A primary goal of a UGB is to preserve open space outside the boundary; however, by eliminating the future rent stream from development, UGBs encourage landowners to adopt more capital-intensive agricultural uses. We empirically estimate UGB effects on intensification rates in Ventura County, California. Difference-in-differences estimates reveal that UGBs increased intensification rates by 16–21 percentage points. In Ventura County, policies designed to preserve open space accelerated its loss and increased agricultural externalities