Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
How do land markets anticipate regulatory change? Evidence from Canadian Conservation policy.
() and Linda Nøstbakken
Abstract: Regulation often evolves, and affected consumers or firms
may adjust their behavior in anticipation of potential changes to
regulation. Using shifting land use regulation boundaries and oil lease
prices from Canada, we estimate the effect of anticipated regulatory change
on the value of land. We find that anticipated rezoning decreases the price
of unregulated leases. Based on our estimates, not accounting for
anticipation underestimates the total cost of the regulation by nearly
one-third. Overall, the evidence suggests that anticipation effects are
significant and that the cost of anticipated regulation is capitalized into
Keywords: Regulation; anticipation; land values; zoning; oil leases; endangered species.; (follow links to similar papers)
JEL-Codes: D44; Q30; Q52; Q58; (follow links to similar papers)
38 pages, June 27, 2016, Revised August 17, 2016
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Dagny Hanne Kristiansen ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom