Land Use & Natural Resources

Perceptions and Preferences of Blount County Residents Regarding the conversion of Land to a Dairy or Residential Development
Research to better understand how Blount County, TN residents would view the conversion of a 500-acre tract of land to a dairy.
Lambert, D.M., C. D. Clark, M. D. Wilcox, S. Cho, and G. F. Smith
2009

Forecasting Open Space with a Two-Rate Property Tax
Land Economics 86
2010
A ‘two-rate property tax’ (TPT) imparts different tax rates on land and structures. A hypothetical TPT is evaluated as an instrument to promote open space preservation in Knox County, Tennessee. The potential TPT effects on open space equilibrium levels were compared with simulated equilibrium levels reflecting the TPT policy shock. Ex ante results suggest that equilibrium open space levels were positively displaced following a revenue neutral tax policy on land. About 76% of the households valued open space more following a land value tax rate of 9.04%, which suggests that households in certain locations are likely to support programs or policies preserving open space.
Cho, S., D.M. Lambert, and R.K. Roberts

Valuing Diversity and Spatial Patterns of Open Space Plots in Urban Neighborhoods
2010
Forest Policy and Economics 12
This study employs a hedonic framework to evaluate how urban residents value variety and spatial arrangement and pattern of open spaces in their neighborhoods. Extending previous studies, it uses a more meaningful set of diversity indices and landscape matrices to evaluate landuse diversity and pattern in a hedonic model. Estimates from hedonic model in this research reveal that urban residents positively valued the varieties of open space but negatively valued the diversity within developed land uses. Square shaped plots of open spaces with smooth, as well straight edges are preferred to those of complex and convoluted shapes with irregular edges. Further, residents preferred open spaces in few larger plots to many fragmented pieces scattered throughout the neighborhood. Findings from this study will be useful in enhancing the quality and amenity value of open spaces and conceivably increase local property tax base.
Neelam, P.C., D.G. Hodges, B.E. Tonn, and S. Cho

Demand for Open Space and Urban Sprawl: The Case of Knox County, Tennessee
2009
Progress in Spatial Analysis: Theory and Computation, and Thematic Applications (Eds) A. Páez, J. Le Gallo, R. Buliung, S. Dall’Erba, Springer, Berlin, forthcoming.
This case study examines the demand for open space in Knox County, Tennessee, United States. A geographically weighted regression (GWR) is adopted to model spatial heterogeneity and spatial error autocorrelation issues. The approach allows local elasticities of demand for open space to be measured and mapped. The empirical findings suggest that amenity values for open space are higher in west Knox County, and the demand for open space is more responsive to changes in income in the western end of Knoxville than the rest of the County. These patterns observed in the western end of Knoxville and in southwest Knox County coincide with the characteristics of preferences of persons employed by the Oak Ridge National Laboratory and the University of Tennessee. We also find that house and lot size, and open space can be complimentary or substitute goods, depending on the location, with complementarities being the dominant relationship on average while substitutability exists inside of city boundary.
Cho, S., D.M. Lambert, R.K. Roberts, and S. Kim

The Effects of Urban Growth Boundary on Housing Price at Knox County, Tennessee
2009
Review of Regional Studies 39.
This study tests the hypothesis whether higher present value of expected rental stream of undeveloped land in the urban growth area influences the effect of Urban Growth Boundary (UGB) on the values of newly developed houses in Knoxville and Knox County, Tennessee. We estimate a version of Box-Cox (BC) transformed hedonic housing price model which accommodates both non-normality and heteroscedasticity in the stochastic error term. The finding of this study verifies the premise that the values of newly developed houses after the implementation of a UGB are likely to be higher within the urban growth area than these outside, with all other things equal.
Cho, S., Z. Chen, and S.T. Yen

Spatial and Temporal Variation in the Housing Market Values of Lot Size and Open Space
2009
Land Economics 85:51-73.
This research analyzes spatial and temporal variation in the effects of lot size and proximity to open space on residential home values in a single Tennessee county. The findings show that the value of proximity to greenways, parks, and water bodies increased over time, while the value of lot size and proximity to golf courses fell. Proximity to open space is found to be a substitute for lot size, although the degree of substitutability has weakened over time. Geographic variation in the marginal effects of lot size and proximity to open space is analyzed using locally weighted regression analysis.
Cho, S., C.D. Clark, W.M. Park, and S. Kim

Forecasting House Prices under Alternative Submarket Assumptions
2009
Urban Studies 46:167-187.
Three types of market segmentation strategies are available to estimate hedonic housing price models—i.e. no segmentation, segmentation by using statistical clustering methods and segmentation by using a priori information. This research tests the hypothesis of Tiebout theory that individual residential decision-making is determined by equilibrium provision of local public goods in accord with the tastes and preferences of residents, thereby sorting their housing locations into optimal sub-markets. Forecasting accuracies of eight sub-market segmentation strategies and two forecast-combining methods are examined by using housing sales data from Knox County, Tennessee, USA. The results provide empirical support for Tiebout theory of optimal housing sub-market location in that boundaries drawn using a priori information from local government jurisdictions, school districts and expert opinions are more closely aligned with the equilibrium provision of local public goods than boundaries drawn by statistical clustering methods. The advantage of forecast-combining is also demonstrated.
Chen, Z., S. Cho, N.C. Poudyal, and R.K. Roberts

Valuation of Spatial Configurations and Forest Types in the Southern Appalachian Highlands
2008
Environmental Management. Published Online
Site-specific estimates of the values of spatial configuration and forest composition are presented. Amenity values of forest patches are found to vary the most by urban and sprawling development patterns of specific areas and forest types. For example, smaller patches of deciduous forest are more highly valued in the urban and sprawling areas of Greensboro, North Carolina, whereas larger patches of deciduous forest are more highly valued in the urban and sprawling areas of Greenville, South Carolina. Within the Greenville and Greensboro areas, visible landscape complexity is highly valued for deciduous and evergreen forest patches, whereas lower visible landscape complexity, i.e., smoothly trimmed forest patch boundaries, is highly valued for mixed forest patches.
Cho, S. S. Jung, and S. Kim

Effects of Urban Sprawl on Hunting Participation in the Southeastern United States
2008
Southern Journal of Applied Forestry 32:134-138.
Hunting is an important but declining activity in the Southeastern United States. Although our understanding of what causes this decline is incomplete, the period of decline coincided with rapid urbanization in the region. Urban sprawl, which is changing sociocultural traditions and leisure patterns, may be a driver in declines in hunting. Therefore, using county-level data for the Southeastern United States, we developed a log-linear demand model of hunting to estimate effects of urban sprawl on hunting. Results suggest that an increase in urban population and dispersal of low-density residential development in the wildland reduced hunting participation in the region. This implies that feasibility and effectiveness of hunting as a wildlife management tool may decrease if the current urbanization trend persists in the region. Results also suggest a need to promote hunting within urban populations and for maintaining hunting opportunities by promoting tighter management of urban sprawl to conserve huntable areas, increasing public hunting land, and possibly increasing public access to private lands.
Poudyal, N.S., S. Cho, and D.G. Hodges

Estimating Spatially Varying Effects of Urban Growth Boundaries on Land Development and Land Value
2008
Land Use Policy 25:320-329.
The empirical evidence is mixed on whether urban growth boundaries (UGB) effectively moderate urbanization. The spatially varying effects of a UGB on land development patterns and land value in Eastern Tennessee, USA, were estimated to examine the impacts of the UGB in different submarkets. A simultaneous-equation model was used with an endogenous binary variable to reflect the parcel's state of development and an endogenous continuous variable measuring parcel land value. Submarkets were identified using cluster analysis. The results suggest that the UGB slowed down development in urban submarkets but development accelerated in rural–urban submarket interfaces where the UGB did not play a role in land values.
Cho, S., N.C. Poudyal, and D.M. Lambert

Modeling Willingness to Pay for Land Conservation Easements: Treatment of Zero and Protest Bids with Application and Policy Implications
2008
Journal of Agricultural and Applied Economics 40:267-285.
This study compares an ordered probit model and a Tobit model with selection to take into account both true zero and protest zero bids while estimating the willingness to pay (WTP) for conservation easements in Macon County, NC. By comparing the two models, the ordered/Unordered selection issue of the protest responses is analyzed to demonstrate how the treatment of protest responses can significantly influence WTP models. Both models consistently show that income and knowledge are positive and significant factors, while distance to poorer quality streams and duration of residency are negative and significant factors on WTP.
Cho, S., S.T. Yen, J.M. Bowker, and D.H. Newman

Socio-Demographic and Market Forces of Land Use Change in Northern Cumberland Plateau, Tennessee
2008
International Journal of Ecological Economics & Statistics 10:53-62.
This paper analyzes land use in the Cumberland Plateau, Tennessee by bridging the broad sociodemographic and market force information at the census-block group level in conjunction with site-specific information of forest land use change at the pixel level. The study focuses on the classical von Thunen model and finds determinants of forest loss. The results indicate that the surface terrain, resident’s education level, market forces from urban centers in proximity, and distance to water streams, major transportation corridors are likely to affect the probability of conversion of forest into both agricultural and urban uses. Findings also suggest that the role of forest is changing from timber, fodder, and fiber toward amenity benefits on the Plateau.
Poudyal, N.C., S. Cho, J.D. Strickland, and D.G. Hodges

Spatial Analysis of the Amenity Value of Green Open Space
2008
Ecological Economics 66:403-416.
The objective of this research is to determine the spatial variation in amenity values for both quantity and quality of green open space in the housing market. Variables related to size, proximity, spatial configuration, and species composition of open space are endogenized in the global and local models in a hedonic price framework. Empirical evidence shows that amenities of different features of open space vary according to the degree of urbanization. In summary, evergreen trees, a diverse landscape with fragmented forest patches, and more complex and natural forest edges are more highly valued in Rural–Urban interfaces. In contrast, deciduous and mixed forests, larger forest blocks, and smoothly trimmed and man-made forest patch boundaries are more highly valued in urban core areas. As spatial variation in amenity values differs across a metropolitan area, the need for site-specific land use management to fit the local characteristics is recognized.
Cho, S., N.C. Poudyal, and R.K. Roberts

The Impact of an Urban Growth Boundary on Land Development in Knox County, Tennessee: A Comparison of Two-Stage Probit Least Squares and Multilayer Neural Network Models
2007
Journal of Agricultural and Applied Economics 39:701-717.
The impact of an urban growth boundary (UGB) on land development in Knox County, TN is estimated via two-stage probit and neural-network models. The insignificance of UGB variable in the two-stage probit model and more visible development patterns in the western part of Knoxville and the neighboring town of Farragut during the post-UGB period in both models suggest that the UGB has not curtailed urban sprawl. Although the network model is found to be a viable alternative to more conventional discrete choice approach for improving the predictability of land development, it is at the cost of evaluating marginal effects.
Cho, S., O.A. Omitaomu, N.C. Poudyal, and D.B. Eastwood

Cure for Urban Sprawl: Measuring the Ratio of Marginal Implicit Prices of Density-to-Lot-Size
2007
Review of Agricultural Economics, 29:572-579.
As smart growth analysts increasingly emphasize higher density housing as a possible cure for urban sprawl, understanding the tradeoff between the values households’ place on neighborhood density and housing lot size becomes increasingly important. This research measures the values households’ place on neighborhood density and the size of single-family housing lots using locally weighted regression in a hedonic housing-pricing framework. Because the local model allows regression coefficients to vary across space, the spatially varying partial derivatives of the hedonic price function with respect to neighborhood density and lot size are estimated locally. Thus, ratios of neighborhood density to lot size values can be estimated locally. These ratios can be used to define locally optimal levels of neighborhood density and lot size to help develop smart-growth policies designed to encourage compact lots and common open spaces.
Cho, S. and R.K. Roberts

Spatial Analysis of Rural Economic Development Using a Locally Weighted Regression Model
2007
Agricultural and Resource Economics Review 36:24-38.
This study uses locally weighted regression to identify county-level characteristics that serve as drivers of creative employment throughout the southern United States. We found that higher per capita income, greater infrastructure investments, and the rural nature of a county tended to promote creative employment density, while higher scores on a natural amenity index had the opposite effect. We were also able to identify and map clusters of rural counties where the marginal effects of these variables on creative employment density were greatest. These findings should help rural communities to promote creative employment growth as a means of furthering rural economic development.
Cho, S., S. Kim, C.D. Clark, and W.M. Park

The Effect of Local Regulations on Urban Development in the Western United States
2007
Regional Science and Urban Economics 37:69-86.
This paper estimates the effect of local land use regulations on land development in five western states of the United States (California, Idaho, Nevada, Oregon, and Washington). Results suggest that local land use regulations reduced the total supply of developed land by 10% in the five western states between 1982 and 1997, with the largest percent reduction in Washington (13.0%), followed by Oregon (12.6%), California (9.5%), Idaho (4.7%), and Nevada (2.8%). Land development was more likely to occur in areas with high uncertainty about net returns to farmland and low uncertainty about net returns to developed land.
Wu, J. and S. Cho

Measuring the Contribution of Water and Green Space to Housing Values: An Application and Comparison of Spatially-Weighted Hedonic Models
2006
Journal of Agricultural and Resource Economics 31:485-507
This study estimates the influence of proximity to water bodies and park amenities on residential housing values in Knox County, Tennessee, using the hedonic price approach. Values for proximity to water bodies and parks are first estimated globally with a standard ordinary least squares (OLS) model. A locally weighted regression model is then employed to investigate spatial nonstationarity and generate local estimates for individual sources of each amenity. The local model reveals some important local differences in the effects of proximity to water bodies and parks on housing price.
Cho, S., J.M. Bowker, and W.M. Park

Two Dimensions of the Spatial Distribution of Housing: Dependency and Heterogeneity across Tennessee’s Six Metropolitan Statistical Areas
2006
Journal of Agricultural and Applied Economics 38:299-316.
A two-stage multinomial logit selection model is used to model the relationship between demographic characteristics and housing density across Tennessee’s six metropolitan statistical areas. The study finds that there is both spatial correlation and heterogeneity in the spatial distribution of housing both within and across the six areas. For example, Memphis, the most densely populated area, has the least amount of spatial correlation among housing density at the neighborhood level, while Johnson City, which has the lowest overall housing density, has the highest degree of spatial correlation.
Cho, S., C.D. Clark, and W.M. Park

Estimating Effects of an Urban Growth Boundary on Land Development
2006
Journal of Agricultural and Applied Economics 38: 287-298.
This study estimates the effects of an urban growth boundary (UGB) on land development decisions in Knox County, TN, using a heteroscedastic probit model. With combined effects of increased land development within the city boundary and decreased development within the UGB and the neighboring town of Farragut after the implementation of UGB, the UGB of Knox County has been successful in urban revitalization within the city boundary and discouraging urban sprawl. These UGB impacts may be related to the city government having the right to annex land parcels within the UGB without consent of land owners.
Cho, S., Z. Chen, S.T. Yen, and D.B. Eastwood

Effects of Urban Sprawl on Body Mass Index: Where People Live Does Matter?
2006
Consumer Interests Annual 52:159-169.
This study examined the effects of urban sprawl on body weights among U.S. adults using quantile regression that is less sensitive to outliers and the skewed distribution of body weights. Significant variations in the effects of urban sprawl on different levels of body weights were found. Holding all other variables constant, the body mass index of the 25% quantile in Harvey County, KS is 1.01 kg/m2 higher than that of the 25% quantile in New York County, NY while the difference is much larger, 1.75 kg/m2 in the 75% quantile. However, urban sprawl has no significant effect on individuals at the 95% quantile. Consumer policy implications are discussed.
Cho, S., Z. Chen, S.T. Yen, and D.B. Eastwood

Spatial Analysis of Housing Growth
2005
Review of Regional Studies 35:311-335.
This article accounts for spatial spillover and spatial heterogeneity to estimate housing growth between 1990 and 2000 using Tennessee census-block group data. A deterministic estimation method, inverse distance weighted averaging is used to create neighborhood variables that can capture more accurate measurement of spatial spillover while reducing multicollinearity. The block-group specific local effects on housing growth are computed using locally weighted regression, and they are mapped using a geographical information system.
Cho, S., B.C. English, and R.K. Roberts

Spatial Analysis of Rural Land Development
2005
Forest Policy and Economics 7:732-744.
This article examines patterns of rural land development and density using spatial econometric models with the application of Geographical Information System (GIS). The cluster patterns of both development and high-density development indicate that the spatially continuous expansions of development and high-density development exist in relatively remote rural areas. The results also revealed that a closer distance to roads, a closer distance to cities, greater access to streams and rivers, higher elevations, and greater proportions of flat area are valued highly in rural land development.
Cho, S. and D.H. Newman

Measuring Rural Home Owners’ Willingness to Pay for Land Conservation Easements
2005
Forest Policy and Economics 7:757-770.
Rapid growth of rural communities in the Blue Ridge Mountains of Macon County, North Carolina has been giving rise to concerns over declining environmental quality and increasing need for land-use policy. This paper examines willingness to pay (WTP) for hypothetical conservation easements as an alternative land-use policy for the county. Despite the fact that Macon County has struggled to adopt any land-use policy, the stated WTP for conservation easements of our study shows that homeowners potentially value the use of conservation easements. Estimated household’s WTP to participate in an easement program ranges from $10.97 to $21.79 per year per household depending on modeling assumptions. Aggregate county WTP ranges from $360,772 to $109,825 depending on aggregation stance. This suggests a range of 53–175 acres entering the program per year, and a consequent decline in the rate of land conversion, compared to the 1987–1997 period, of 14–46%.
Cho, S., D.H. Newman, and J.M. Bowker

Community Choices and Housing Demands: A Spatial Analysis of the Southern Appalachian Highlands
2005
Housing Studies 20:549-569.
This paper examines housing demand using an integrated approach that combines residential decisions about choices of community in the Southern Appalachian region with the application of a Geographical Information System (GIS). The empirical model infers a distinctive heterogeneity in the characteristics of community choices. The results also indicate that socioeconomic motives strongly affect urban housing demands while environmental amenities affect those of rural housing demand.
Cho, S., D.H. Newman, and D.N. Wear

Measuring Interactions among Urban Development, Land Use Regulations, and Public Finance
2003
American Journal of Agricultural Economics 85:988-999.
This article presents a polychotomous choice-selectivity model to estimate the interactions among urbanization, land use regulations, and public finance in five western states (California, Idaho, Nevada, Oregon, and Washington). Land use regulations in these five states reduced the total developed area by an estimated 12.2% from 1982 to 1992, but increased housing prices between 1.3% and 4.7%, depending on the intensity of land use regulations in a county. Land use regulations also reduced public expenditure and property tax in the long run by 5.6% and 8.4%, respectively, but increased public expenditure and property tax in the short run by 9.8% and 12.6%.
Cho, S., J. Wu, and W.G. Boggess

Impacts of Second Home Development on Housing Prices in the Southern Appalachian Highlands
2003
Review of Urban and Regional Development Studies 15:208-225.
This study estimates the value of socioeconomics, spatial and environmental attributes on housing prices of both urban and rural communities in the primary and second home areas of the Southern Appalachian Highlands, using the hedonic property price model. Distance and environmental attributes are valued more heavily in the rural communities of the second home area than in the urban communities of the primary home area. The effect of second homes on housing prices is mainly evident in the rural communities. Second home development impacts a home’s value by US$2,378, or 4.2% of $56,245, the average value of a rural home.
Cho, S., D.H. Newman, and D.N. Wear

Estimating Households’ Preferences for Environmental Amenities Using Equilibrium Models of Local Jurisdictions
2003
Scottish Journal of Political Economy 50:189-206.
Abstract Much research has focused on the development of equilibrium models of local jurisdictions to analyze the formation of social structures and community characteristics. These models, however, have been subjected to little empirical testing. In a recent paper, Epple and Sieg (1999) developed a new method for estimating equilibrium models of local jurisdictions, but they did not include environmental amenities in their empirical application. In this paper, we extend and apply this new method to estimate households’ preferences for alternative environmental amenities in the Portland Oregon metropolitan area. We show that estimated structural parameters would be biased if environmental amenities are ignored. By including amenities into the structural models of local jurisdictions, households’ preferences for alternative environmental amenities and public goods are estimated. Parameter values underlying households’ residential choices are uncovered. Many of the empirical regularities observed in the data are replicated.
Wu, J. and S. Cho

SMART About Water
Helping America's Small Communities Protect Their Source Water
The link between the water you drink and the water you dispose of is one that many people never connect. The SMART About Water project helps small communities understand the concept of Source Water Protection and wellhead protection. The program provides training and technical assistance about source water planning and pinpoints untreated wastewater from failing septic and sewer systems, the largest contributor to water quality degradation.