Communities, Competition, Spillovers, and Open Space

A. Strong, R. P. Walsh
2008 Land Economics  
We explore the impact of both the number and spatial distribution of local jurisdictions on the decision to commit developable acreage to the provision of open space. Our analysis differs from the existing literature on the provision of public goods in a number of ways. First, we demonstrate that the mixed public good nature of open space (in relation to private lot consumption) can yield outcomes where a single land rent-maximizing community over-supplies open space relative to the utility
more » ... mizing open space level. Second, by explicitly incorporating the spatial distribution of open space spillovers, our stylized model shows how competition can lead not only to inefficient levels of open space provision, but also to inefficiencies in the spatial distribution of open space. Finally, the efficacy of a market-based approach to restore open space levels is considered.
doi:10.3368/le.84.2.169 fatcat:4fvcxurzh5hxtmtpjhxiudk2r4