The Supply of Development Rights: Results from a Survey in Hadley, Massachusetts

Abstract

Interest in programs for the purchase or transfer of development rights (PDR or TDR) as a means of preserving urban landmarks, agricultural land, and open space has resulted in a growing literature on the economic efficiency and incidence of these new land use instruments. Much of this literature has been theoretical in nature or simulative of impacts which could occur in specific programs.1 While many states have enacted enabling legislation and numerous counties, towns, and cities have instigated PDR or TDR programs, the limited number of actual transactions has precluded a definitive assessment of any ongoing program. In this note we report on some survey results from a study designed to examine the supply response of rural landowners within a hypothetical development rights program. The data on which our results are based were obtained from a survey of 22 agricultural landowners in the town of Hadley, Massachusetts.2 Our results have implications for a PDR program or a voluntary TDR program; that is, in the interview process we attempted to ascertain the number of acres for which development rights would be voluntarily forthcoming at alternative offer prices.3 In addition to the supply response for development rights we also inquired into the supply of land (that is, acquisition of fee simple title) and socioeconomic factors which might explain a