Pros And Cons Of Zoning

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Land-use regulation and zoning policies aim to be beneficial to the city, but often lead to problems when implemented alone. Zoning as an environmental policy to curb pollution levels to the socially efficient level is not effective as it only moves the pollution. Local governments that zone for open public space create inefficiencies, creating welfare loss. The problems of exclusionary zoning arise, potentially leading to ethnic segregation and very few affordable housing opportunities. The opposite policy practice of inclusionary zoning is drawing widespread acclaim and critique, but is not a full proof solution to urban issues.
The inefficiency and multiple key problems of zoning as a policy tool begs the question of the best way to implement …show more content…

Zoning as an environmental policy is ineffective as it only moves pollution around and does not offset the negative externality. However, combining zoning and the economic approach of fixing environmental externalities through tax, we achieve the socially efficient level of pollution and control exposure. Zoning retail space away from residential areas does not fix the externalities of commercial areas. Rather, zoning while also implementing performance standards, which requires firms to offset negative externalities by funding public goods, is more efficient. Local government provides open public space, however, when it zones for it, it causes inefficiency. It shifts some of the cost of providing the space to landowners, and the government ends up providing too much open space, creating a welfare loss. The following graph illustrates the open space dilemma and what occurs when zoning is used as a tool for providing open …show more content…

Using only zoning as a policy tool to combat environmental and open space issues create externalities. Framing zoning as inefficiencies does help urban planners, allowing policymakers to implement strategies such as taxes to bring cities to socially efficient levels. Thinking of land-use regulation through self-reinforcing effects and unintended consequences are also helpful – it makes planners conscious of what kind of long-lasting effects zoning has, and other areas that it could affect such as market-rate housing and race. However, while framing zoning into economic terms is helpful, it does not capture the intangibles. Some zoning models do not capture the community value of a neighborhood or the complex racial consequences. It would be helpful for planners to think of land-use regulation by combining both the economic analysis through externalities, but also think of the unintended consequences on a more wider, social

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