Estimating the Effect of Land Use Regulation on Land Price: At the kink point of building height limits in Fukuoka
(Previous title) Estimating the Impact of Land Use Regulation on Land Price: At the Kink Point of Building Height Limits in Fukuoka*

         
Author Name NAKAJIMA Kentaro (Faculty Fellow, RIETI) / TAKANO Keisuke (Hitotsubashi University)
Creation Date/NO. October 2021 21-E-088
Research Project Urban policy from the view of consumer city
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Notes

First draft: October 2021
Revised: October 2023

Abstract

This study estimates the effect of land use regulation on land price by exploiting the feature of building height limits of the aviation law in Fukuoka, Japan. The law limits the height of a building that is within 4000 meters of an airport to 54.1 m, but when the distance exceeds 4000 meters, the limits are relaxed. Exploiting this regulation feature, we estimate the effect of the regulation on land price using the regression kink design. We find that building height restriction has a significantly negative effect on land price and the magnitude of the effects depends on the stringency of regulation.

* We revised this discussion paper with the new title in October 2023. This paper was previously circulated under the title "Estimating the Impact of Land Use Regulation on Land Price: At the Kink Point of Building Height Limits in Fukuoka."

Published: Nakajima, Kentaro, and Keisuke Takano, 2023. "Estimating the effect of land use regulation on land price: At the kink point of building height limits in Fukuoka," Regional Science and Urban Economics, Volume 103 (2023), 103955
https://www.sciencedirect.com/science/article/abs/pii/S016604622300090X