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The institutional framework of land-use decisions

✍ Scribed by K. Bizer

Publisher
John Wiley and Sons
Year
2005
Tongue
English
Weight
231 KB
Volume
16
Category
Article
ISSN
1085-3278

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✦ Synopsis

Abstract

Effective soil‐protection policies should be based on a sound understanding of individual land‐use decisions in order to change it towards more sustainable decisions. This paper argues for the modification of the behavioural model of ‘Homo economicus’ by explicitly allowing for cognitive limits and non‐reflective modes of behaviour in addition to situational utility‐maximizing behaviour. These modifications take into account actual difficulties in changing individual land‐use decisions. While it is possible to adjust behaviour by moral persuasion, consensus‐oriented round‐tables or planning processes, such approaches are unlikely to bring about effective changes in land‐use decisions without changing relative prices. This paper suggests ways to implement a special land‐use tax as a reform model for existing property taxes. Such a land‐use tax applies different rates according to ecological damage. Accordingly, surfaces covered by buildings will pay higher tax rates than free space. Conventional agriculture will pay more than forest areas, and nature reserve areas will be free of charge. Such a land‐use tax, designed as a revenue‐neutral alternative to Germany's property tax, could trigger modest changes in land‐use behaviour in the near future. A general reform of local fiscal relations could increase this effect in the long run. Copyright © 2005 John Wiley & Sons, Ltd.

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