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Title: The Global Effect of Housing Policy

Citation Type: Conference Paper

Publication Year: 2014

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Abstract: This paper studies the links between housing policies and aggregate energy use in the U.S. I connect two strands of literature on cities that cities vary in their per capita energy use in terms of housing supply elasticity to measure the effects of location choice and housing consumption on aggregate energy use. I build a dynamic spatial equilibrium model of U.S. metropolitan areas, accounting for local heterogeneity in housing demand and supply. Importantly, I decompose the supply restrictions into those naturally-occurring and those policy-induced. After matching the model to data on housing prices, construction activity, and building density, I conduct policy simulations to quantify the effects of various housing policies on energy use. Results indicate that removing the federal tax subsidy for housing would result in a lower aggregate energy use, as would increasing land use regulations in high energy use locations. The primary channel is reducing the amount of housing consumed per person, and the secondary channel is in reallocating population from inefficient to more efficient locations.

Url: http://www.ieb.ub.edu/files/PapersWSUE2014/Mangum.pdf

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Authors: Mangum, Kyle

Conference Name: 3rd Workshop on Urban Economics

Publisher Location: Barcelon Institute of Economics

Data Collections: IPUMS USA

Topics: Housing and Segregation, Natural Resource Management, Other

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