Game of Zones: The Political Economy of Conservation Areas

100 Pages Posted: 18 Apr 2016

See all articles by Gabriel M. Ahlfeldt

Gabriel M. Ahlfeldt

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Kristoffer Möller

Darmstadt University of Technology

Sevrin Waights

Darmstadt University of Technology

Nicolai Wendland

Touro College

Multiple version iconThere are 2 versions of this paper

Date Written: March 2016

Abstract

We develop and test a simple theory of the conservation area designation process in which we postulate that the level of designation is chosen to comply with interests of local homeowners. Conservation areas provide benefits to local homeowners by reducing uncertainty regarding the future of their area. At the same time, the restrictions impose a cost by limiting the degree to which properties can be altered. In line with our model predictions we find that an increase in preferences for historic character by the local population increases the likelihood of a designation, and that new designations at the margin are not associated with significant house price capitalisation effects.

Keywords: Designation, Difference-in-Differences, England, Gentrification, Heritage, Property Value

JEL Classification: H23, H31, R40, R58

Suggested Citation

Ahlfeldt, Gabriel M. and Möller, Kristoffer and Waights, Sevrin and Wendland, Nicolai, Game of Zones: The Political Economy of Conservation Areas (March 2016). Available at SSRN: https://ssrn.com/abstract=2766438

Gabriel M. Ahlfeldt (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/ahlfeldg/

Kristoffer Möller

Darmstadt University of Technology ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289
Germany

Sevrin Waights

Darmstadt University of Technology ( email )

Universitaets- und Landesbibliothek Darmstadt
Magdalenenstrasse 8
Darmstadt, Hesse D-64289
Germany

Nicolai Wendland

Touro College ( email )

1602 Avenue J
New York, NY 10010
United States

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