Open space preservation, property value, and optimal spatial configuration

Abstract

The public has increasingly demonstrated a strong support for open space preservation. How to finance the socially efficient level of open space with the optimal spatial structure is of high policy relevance to local governments. In this study, we developed a spatially explicit open space model to help identify the socially optimal amount and optimal spatial configuration of open space in a two-dimensional coordinate system. Preservation of open space can cause real estate values to rise and thereby generate an increment in property tax revenues (a "tax increment"). Our simulation results for the spatially explicit open space model not only show the existence of an optimal amount of open space that can be financed by the property tax increment, but also illustrate to what extent the spatial configuration of open space could matter in terms of the net value of community developable land and the capacity of tax increment financing. Our simulation suggests that being evenly distributed and centrally located is very likely to characterize the optimal spatial configuration of preserved open space in terms of net social value and the capacity of tax increment financing.

Parent Publication

• Proceedings of the 2006 Northeastern Recreation Research Symposium

Citation

Jiang, Yong; Swallow, Stephen K. 2007. Open space preservation, property value, and optimal spatial configuration. In: Burns, R.; Robinson, K., comps. Proceedings of the 2006 Northeastern Recreation Research Symposium; 2006 April 9-11; Bolton Landing, NY. Gen. Tech. Rep. NRS-P-14. Newtown Square, PA: U.S. Department of Agriculture, Forest Service, Northern Research Station: 128-134.