Abstract

Land use change is a leading cause of environmental degradation in amenity rich rural areas. Numerous policies have been used to combat these negative effects, including zoning and land acquisition. The empirical effects of these policies on the environment and land markets are still debated. Using a coupled economic–ecological model in conjunction with landscape simulations we investigate the effect of zoning and land acquisition on property prices and largemouth bass (Micropterus salmoides) growth in Vilas County, WI, an amenity rich region with growing rural development. Using econometric models of land use change and property prices, we simulate four alternative land use scenarios: a baseline simulation, a zoning change simulation, a land acquisition program simulation, and a land acquisition program+zoning simulation. Each scenario is simulated over 82 separate lakes. For each scenario we calculate the length of a 20-year old largemouth bass, property prices, and number of new residences at simulation years 20, 40 and 60. The policies have small effects on largemouth bass size and property prices on most lakes, although the effects are more pronounced on some. We also test if the increased property values due to land acquisitions are greater than the cost of the land acquisition program and find that in our case, land acquisition does not “pay for itself”. Our methodology provides a means to untangle the complex interactions between policy, land markets, and the environment. Empirically, our results indicate zoning and land acquisition are likely most effective when targeted to particular lakes.

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