Alternative Policies for Preserving Farm and Open Areas: Analysis and Evaluation of Available Options

A bstract . Rapid urban growth disrupts land use patterns on the urban-rural fringe , increasing development pressure on nearby farm and open lands. Many public agencies have attempted to moderate these development pressures through intervention in the local land market in order to preserve remaining open areas. There are essentially five ways that governmental units can act to preserve farm and open lands: public purchase of these lands; restrictive zoning laws ; public purchase of the development rights to open lands; programs of transferable development rights, and preferential assessment property tax programs. Each of these methods imposes burdens on different groups and creates winners and losers among property owners, taypayers and others. This paper analyzes the economic impacts of these open space preservation programs and evaluates their effectiveness in achieving their goals. None of the programs evaluated is judged to be perfect in preserving open space, but the public purchase of development rights is seen to be an equitable second-best solution.