In addition to prohibiting development, reserving land for open space converts a

Question

In addition to prohibiting development, reserving land for open space converts a private good (use of the land for commercial development purposes) into a public good (open access to the land for general public enjoyment). One way a society can reserve land for open space for the benefit of all is through zoning – prohibiting development in certain areas. As an alternative, a government may establish a budget category, funded by tax collections, for purchasing lands for public use. Is one approach more likely than the other to lead to a social optimum (i.e., be most consistent with consumer preferences for public and private goods)? What factors or conditions might favor one approach over another?

Explanation / Answer

As cities expand and undertake roadways, sewer and power lines, communications, the government must acquire access to private land. Without the government's power to do so, the size and capabilities of our public infrastructure would be rendered insufficient to serve the requirements of society. The right of the government to obtain private land for public purposes is called eminent domain. The power of eminent domain allows the government to take private land for public purposes if the government gives fair compensation to the property owner. The method by which the government acquires private property for public use is called as condemnation.

Zoning

The most prevalent form of land-use regulation is zoning. Zoning regulations are utilized by municipalities to direct the development of property within their borders.

Courts have held that a zoning regulation is acceptable if it is reasonable and not arbitrary; if it has a reasonable  link to public health, safety, and general welfare; and if the ways employed are reasonably necessary for the fulfillment of its purpose. Due to the subjective nature of these factors, there exists a lot of scope for disagreement and litigation.

Recent court decisions have made it difficult for municipalities to require that land developers give up some of their property for public uses. These cases serve to define the point at which government demands for control over the land become such that it must compensate the owner by exercising its power of eminent domain and condemning the property.

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