LAND PRICES AND LANDSCAPE PRESERVATION RESTRICTION IN A METROPOLITAN AREA: THE CASE OF KYOTO CITY

Abstract

This paper provides an empirical analysis of the effect on land prices of the “New Landscape Preservation Policy” enacted in Kyoto City in 2007. The main feature of this policy is building height restrictions in the central part of the city. We use a hedonic approach and find there has been a rise in land prices around the central part of the city, similar to the simulation results of previous studies using computational general equilibrium models. There has also been a rise in land prices in the central part of the city, which differs from the findings of previous studies. Additionally, a negative macroshock on the entire city and a fall in land prices in the urban fringe area are observable.