Spatial Externalities and Land Use Regulation: An Integrated Set of Multiple Density Regulations

45 Pages Posted: 4 Apr 2013 Last revised: 11 Oct 2017

See all articles by Tatsuhito Kono

Tatsuhito Kono

Tohoku University - Graduate School of Information Sciences

Kirti Kusum Joshi

Tohoku University, Graduate School of Information Sciences

Date Written: February 2, 2014

Abstract

In a continuous city with three distinct land use zones consisting of firms, condominiums and detached houses, we derive the formulae – composed entirely of observable variables – which design simultaneous optimization of regulations on building size, lot size and zonal boundaries under the existence of agglomeration externality in the business zone and traffic congestion across the city. The formulae show that the optimal regulations require not only downward but also upward adjustment to the market size of buildings within each of the business zone and the condominium zone, followed by minimum lot size regulation in the suburb. Regarding the optimal size of the three zones, the boundary of business zone and the boundary between the condominium and housing zones should be shrunk inward relative to the respective market boundary, and the overall city size should also be more compact than the market city.

Keywords: Agglomeration externality, Congestion; Floor area ratio, Lot size regulation, Urban growth boundary

JEL Classification: R11, R13, R14, R52

Suggested Citation

Kono, Tatsuhito and Joshi, Kirti Kusum, Spatial Externalities and Land Use Regulation: An Integrated Set of Multiple Density Regulations (February 2, 2014). Available at SSRN: https://ssrn.com/abstract=2244722 or http://dx.doi.org/10.2139/ssrn.2244722

Tatsuhito Kono (Contact Author)

Tohoku University - Graduate School of Information Sciences ( email )

Aoba 6-3-9
Aoba-ku, Sendai, 980-8579
Japan
81-22-795-4477 (Phone)
81-22-795-4497 (Fax)

HOME PAGE: http://www.se.is.tohoku.ac.jp/~kono/t-kono.html

Kirti Kusum Joshi

Tohoku University, Graduate School of Information Sciences ( email )

Japan

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