Law and Economics and Zoning

Paper Summary:

This paper examines the economic perception of zoning as somehow infringing on the rights of property owners and indirectly interfering with the free market. It explains that some researchers disagree with this perception and say that the primary criticisms directed towards zoning are that zoning is unfair to some property owners to a greater degree than others and therefore inherently biased, and that zoning adds unnecessary and often excessive transaction costs that in effect are economic externals. The writer notes that not having any controls on the economic development of a region would result in commercial activity being developed in or near residential neighborhoods that would negatively impact housing values of all the surrounding neighborhoods. The writer believes that zoning is in itself useful and necessary but there should be a bargaining element introduced that removes sole decisive power from the municipality to one degree or another. The writer concludes that currently there is no alternative to any zoning decision made by municipalities and this is not necessarily good either.

From the Paper:

"Many economists consider zoning a response to population growth and specifically urban sprawl in that zoning can be considered a solution to these problems relative to land use issues. Zoning is essentially an extension of political control over the development process within communities. Political controls over land use manifested through zoning laws are in place in every province of Canada and, in many cases, rationalized through environmental reasons or, conversely, are used to indicate that public utilities or services do not have the ability to service additional development in a given area."

Sample of Sources Used:

• Bish, Robert. Urban Economics and Policy Analysis. McGraw-Hill, 1984.
• Fischel, William. The Economics of Zoning Laws. John Hopkins University Press, 1985.
• Heilbrun, James. Urban Economics and Public Policy. St. Martin's Press, 1987.
• Karkkainen, Bradley. "Zoning: A Reply to the Critics." Journal of Land Use & Environmental Law, (1994).
• Levy, John. Essential Microeconomics for Public Policy Analysis. Preager, 1995.

More papers on Law and Economics and Zoning:

• Essay # 30093 : "New York Zoning"
• Essay # 52701 : "New York City's Zoning and Setback Laws"
• Essay # 41184 : "Zoning"

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