Charles Taylor, University of California, Berkeley
Paving the Swamp: Cost of Land Use Regulation (Joint with Hannah Druckenmiller and Joseph S. Shapiro)
Date and Location
Wednesday, May 10, 2023, 4:10 PM - 5:30 PM
Abstract
How does environmental regulation of land use affect the economy and the environment? We study restrictions on the development of US water resources under Section 404 of the Clean Water Act, a controversial regulation subject to Supreme Court challenges, presidential rule changes, and litigation from 41 states. Exploiting a regulatory change by the Trump administration that narrowed the Clean Water Act's scope, we obtain four findings. First, the Trump rule significantly increased permitting and development activity around wetlands. Second, lands that became less likely to be regulated under the Clean Water Act increased in value by ~10%. Third, the quantity of sales of wetland properties increased in response to the rule change. Fourth, deregulation leads to on-the-ground change, increasing built-up area and reducing wetland area. This paper highlights the importance of land markets in assessing the costs and benefits of land use regulation.
Subscribe to Upcoming Seminars
Click here to receive weekly notice of all upcoming seminars via email.
Individual seminar and workshop announcements are circulated via separate mailing lists. To subscribe, send an email to the relevant list:
- Click here to subscribe to the Departmental Seminars.
- Click here to subscribe to the Agricultural Economics Workshop.
- Click here to subscribe to the Development Workshop.
- Click here to subscribe to the Econometrics Seminars.
- Click here to subscribe to the Environmental and Resource Economics Workshop and the Environmental and Energy Economics Workshop.
Contact Us
2116 Social Sciences and HumanitiesUniversity of California, Davis
One Shields Avenue
Davis, CA 95616
Main Office: 530-752-1515
Student Advising Services: 530-754-9536
DeLoach Conference Room: 530-752-2916
Main Conference Room: 530-754-1850