Analyzing Building Height Restrictions: Predicted Impacts, Welfare Costs, and a Case Study of Bangalore, India
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World Bank, Washington, D.C.
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The authors analyze the effects of
building height restrictions, providing a concrete welfare
cost estimate for the city of Bangalore, India. Relying on
several theoretical results, their analysis shows that the
welfare cost imposed on its residents by Bangalore's
building height restriction ranges between 3 and 6 percent
of household consumption. This burden represents a
significant share of individual resources, and its presence
may push many marginal households into poverty.
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BENCHMARK, BUILDING MATERIALS, CITIES, COMMAND ECONOMIES, CONSUMERS, COST SAVINGS, DISPOSABLE INCOME, DWELLING, ENVIRONMENTAL QUALITY, EQUILIBRIUM, EXTERNALITIES, GOVERNMENT INTERVENTION, HOUSING, HOUSING PRICES, HOUSING SUPPLY, INCOME, LAND USE, LAWS, LIVING CONDITIONS, MARKET ECONOMIES, MUNICIPAL GOVERNMENTS, MUNICIPAL SERVICES, MUNICIPALITIES, NATIONAL INCOME, NORMAL GOOD, OPERATING COSTS, PER CAPITA INCOME, POLICY MAKERS, POPULATION DENSITIES, PRODUCTION FUNCTION, PRODUCTION FUNCTIONS, PRODUCTION TECHNOLOGY, PRODUCTIVITY, PURCHASING POWER, REAL ESTATE, REAL ESTATE MARKETS, REGULATORY POLICY, SAVINGS, TAX, TAX REVENUE, TRAFFIC CONGESTION, TRANSPORT, URBAN GROWTH, URBAN INFRASTRUCTURE, URBAN LAND, UTILITY FUNCTION, WASTE DISPOSAL, ZONING BUILDING HEIGHT RESTRICTIONS, CASE STUDIES, WELFARE ECONOMICS, COST ANALYSIS, HOUSEHOLD CONSUMPTION, URBAN CONCENTRATION, BURDEN SHARING, MARGINALIZED GROUPS, URBAN POVERTY