Abstract
In the early 2000s, Seoul reduced the floor area ratios (FARs) of residential areas by nearly 20%. We examine the impact of down-zoning on the gross regional product (GRP). We build a land use-transportation model comprising Seoul and its neighboring local governments and calibrate the model against the land and housing markets in Seoul. Lowering the overall FARs by 20% results in the GRP 6.6% smaller than the prior level. The decrease in the GRP comes from the decline in the final consumption of housing service and composite good. In addition, the impact of the FAR regulation of residential areas on the GRP is almost three times larger than that of industrial areas.
| Translated title of the contribution | The Effect of Floor Area Ratio Regulation on Gross Regional Product |
|---|---|
| Original language | Korean |
| Pages (from-to) | 141-158 |
| Number of pages | 18 |
| Journal | 국토계획 |
| Volume | 52 |
| Issue number | 7 |
| DOIs | |
| State | Published - Dec 2017 |