Welfare Effects of Nuisance Zoning

抄録

The welfare effects of nuisance zoning on residents and landowners are analyzed by explicitly incorporating the nuisance externality from industry sector to residence. The numerical simulation based on a simplified linear city model shows that nuisance zoning generally causes a trade-off between the welfare of residents and landowners. Such a trade-off always emerges in the presence of large agglomeration economies, where stricter zoning is more favorable to residents.