Toward an Evaluative Framework for Land Use Policy in Industrial Districts of the Urban Core: A Qualitative Analysis of the Exclusionary Zoning Approach

Abstract

This paper provides a preliminary analysis of costs and benefits associated with exclusionary zoning, a policy vehicle which seeks to preserve or promote industry in the urban core especially (where competition for land resources is typically the greatest), by prohibiting the incursion or encroachment of 'higher uses.' The paper examines arguments commonly advanced pertaining both to alleged 'costs' of exclusionary zoning (e.g., relating to efficiency arguments, impacts on urban economic adaptability, and municipal revenues); and also to perceived 'benefits' (diversification of the economic base and urban employment structure, efficiency of public service provision, the restriction of negative externalities, etc.).

It is observed that for both costs and benefits, basic underlying arguments have in some cases been over-stated, or have failed to critically examine all relevant factors. It is suggested that in general, exclusionary zoning may be appropriate if applied in a selective manner; but that expectations as to outcome should be tempered in the light of possible costs, and also by an understanding of serious limitations associated with that approach.