SECTOR LAND USE AND INDUSTRIAL MIX IN URBAN LAND ALLOCATION

Abstract

This paper uses a computable general equilibrium (CGE) model with integrated sector and residential land data to estimate the impact of allocating land to specific industrial sectors. It also analyzes sector combinations for a 15 acre development project using four local interest measures (LIMs): income per acre, tax revenue per acre, income per household, and tax revenue per household. Allocating an acre to high-wage services yields the largest increases in population and household income, while retail's modest indirect effects make it attractive to areas with limited available land. Sector-specific land multipliers are estimated and total land is broken into categories to aid zoning and housing distribution. The results show the importance of sector interaction and reveal sector growth complements, sectors that when added to a project, increase a LIM. Finally, the results show that if manufacturing is unavailable, export growth in retail or tourism can substitute and increase most LIMs.