Urban containment: An effective tool for environmental protection?

Detalhes bibliográficos
Autor(a) principal: Cunha-e-Sá, Maria Antonieta da
Data de Publicação: 2012
Outros Autores: Fernandes Franco, Sofia
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/11155
Resumo: This paper examines the effectiveness of urban containment policies to protect forestland from residential conversion and to increase the provision of forest public goods in the presence of irreversible investments and policy uncertainty. We develop a model of a single landowner that allows for switching between competing land uses (forestry and residential use) at some point in the future. Our results show that urban containment policies can protect (even if temporarily) forestland from being developed but must be supplemented with policies that influence the length and number of harvesting cycles if the goal is to increase nontimber benefits. The threat of a development prohibition creates incentives for preemptive timber harvesting and land conversion. In particular, threatened regulation creates an incentive to shorten rotation cycles to avoid costly land-use restrictions. However, it has an ambiguous effect on forestland conversion as the number of rotation cycles can also be adjusted to maximize the expected returns to land. Finally, in the presence of irreversibility, forestland conversion decisions should be done using real option theory rather than net present value analysis
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spelling Urban containment: An effective tool for environmental protection?Urban developmentForest externalitiesRotation cyclesUrban conversionUGBGreenbeltThis paper examines the effectiveness of urban containment policies to protect forestland from residential conversion and to increase the provision of forest public goods in the presence of irreversible investments and policy uncertainty. We develop a model of a single landowner that allows for switching between competing land uses (forestry and residential use) at some point in the future. Our results show that urban containment policies can protect (even if temporarily) forestland from being developed but must be supplemented with policies that influence the length and number of harvesting cycles if the goal is to increase nontimber benefits. The threat of a development prohibition creates incentives for preemptive timber harvesting and land conversion. In particular, threatened regulation creates an incentive to shorten rotation cycles to avoid costly land-use restrictions. However, it has an ambiguous effect on forestland conversion as the number of rotation cycles can also be adjusted to maximize the expected returns to land. Finally, in the presence of irreversibility, forestland conversion decisions should be done using real option theory rather than net present value analysisNova SBERUNCunha-e-Sá, Maria Antonieta daFernandes Franco, Sofia2014-01-24T10:23:41Z2012-012012-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/11155enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T03:45:30Zoai:run.unl.pt:10362/11155Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:20:05.969290Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Urban containment: An effective tool for environmental protection?
title Urban containment: An effective tool for environmental protection?
spellingShingle Urban containment: An effective tool for environmental protection?
Cunha-e-Sá, Maria Antonieta da
Urban development
Forest externalities
Rotation cycles
Urban conversion
UGB
Greenbelt
title_short Urban containment: An effective tool for environmental protection?
title_full Urban containment: An effective tool for environmental protection?
title_fullStr Urban containment: An effective tool for environmental protection?
title_full_unstemmed Urban containment: An effective tool for environmental protection?
title_sort Urban containment: An effective tool for environmental protection?
author Cunha-e-Sá, Maria Antonieta da
author_facet Cunha-e-Sá, Maria Antonieta da
Fernandes Franco, Sofia
author_role author
author2 Fernandes Franco, Sofia
author2_role author
dc.contributor.none.fl_str_mv RUN
dc.contributor.author.fl_str_mv Cunha-e-Sá, Maria Antonieta da
Fernandes Franco, Sofia
dc.subject.por.fl_str_mv Urban development
Forest externalities
Rotation cycles
Urban conversion
UGB
Greenbelt
topic Urban development
Forest externalities
Rotation cycles
Urban conversion
UGB
Greenbelt
description This paper examines the effectiveness of urban containment policies to protect forestland from residential conversion and to increase the provision of forest public goods in the presence of irreversible investments and policy uncertainty. We develop a model of a single landowner that allows for switching between competing land uses (forestry and residential use) at some point in the future. Our results show that urban containment policies can protect (even if temporarily) forestland from being developed but must be supplemented with policies that influence the length and number of harvesting cycles if the goal is to increase nontimber benefits. The threat of a development prohibition creates incentives for preemptive timber harvesting and land conversion. In particular, threatened regulation creates an incentive to shorten rotation cycles to avoid costly land-use restrictions. However, it has an ambiguous effect on forestland conversion as the number of rotation cycles can also be adjusted to maximize the expected returns to land. Finally, in the presence of irreversibility, forestland conversion decisions should be done using real option theory rather than net present value analysis
publishDate 2012
dc.date.none.fl_str_mv 2012-01
2012-01-01T00:00:00Z
2014-01-24T10:23:41Z
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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