Do Land Use Policies Follow Road Construction?

IEB Working Paper N. 2014/2

55 Pages Posted: 18 Mar 2014

See all articles by Miquel-Àngel Garcia-López

Miquel-Àngel Garcia-López

Autonomous University of Barcelona; University of Barcelona - Institut d'Economia de Barcelona (IEB)

Albert Sole-Olle

University of Barcelona; CESifo (Center for Economic Studies and Ifo Institute)

Elisabet Viladecans-Marsal

University of Barcelona

Multiple version iconThere are 2 versions of this paper

Date Written: February 13, 2014

Abstract

We study whether local land use policies are modified in response to enhanced demand for building generated by a new highway. We also examine the extent to which this effect affects building activity. We focus on the case of Spain during the last housing boom (1995-2007). We assembled a new database with information about new highway segments and the modification of the land zoning status in nearby municipalities. The empirical strategy compares the variation in the amount of developable land before-after the construction of the highway in treated municipalities and in control municipalities with similar pre-treatment traits. Our results show that, following the construction of a highway, municipalities converted a huge amount of land from rural to urban uses. We also show that new highways have an impact on building activity.

Keywords: Land use regulation, Highways

JEL Classification: R4, R52, O2

Suggested Citation

Garcia-López, Miquel-Àngel and Sole-Olle, Albert and Viladecans-Marsal, Elisabet, Do Land Use Policies Follow Road Construction? (February 13, 2014). IEB Working Paper N. 2014/2. Available at SSRN: https://ssrn.com/abstract=2410377 or http://dx.doi.org/10.2139/ssrn.2410377

Miquel-Àngel Garcia-López (Contact Author)

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

University of Barcelona - Institut d'Economia de Barcelona (IEB) ( email )

Barcelona

Albert Sole-Olle

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Elisabet Viladecans-Marsal

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

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