Sustainable Human–Nature Relations by Unknown

Author:Unknown
Language: eng
Format: epub
ISBN: 9789811530494
Publisher: Springer Singapore

2 Literature Review

Land speculation has been intertwined with land expansion throughout much of the development of the USA. Historians have criticized the widespread occurrence of speculative land sales in the development of the American border throughout the nineteenth century [22], even though speculative land sales had been generally prejudice based the two centuries prior. There have been a number of scenario-driven examples of speculative fever throughout much of the world’s colonial era. Some argue that land speculation was a chief stirring force behind the development of the West; however, notwithstanding the fact that land speculation has become an American ritual, it can also be said that it has often been negatively maligned [2, 23]. For example, Yearwood [24] stated how speculation can lead to the misuse of valuable resources. He explains: “there is waste in taking land out of productive use before it is ready for another; squander in tying up capital for long periods in a barren enterprise, with more in taxes, interest, and extraordinary assessments; worst in the division of land into lots that are too small, or of poor design, or poorly to be found; waste in zoning too much for business use; and waste in replotting land which has been precipitated subdivided. There are other wastes too, increased overall government costs, all of which affect the community unfavorably.”

It is doubtful that land speculation is as spiteful as some believe; there are some well-documented studies that examine its effects. Three items relating to speculation in urban land appear to be well understood: (1) uptown land pending conversion for urban use increases in price, (2) such land will eventually be sold to developers for many times the value as opposed to agricultural use, and (3) large areas of the land will remain inactive at any given point in time [25]. As such, Schmid [26] presented data which revealed that in the period 1958–1964, the price of land for development in the USA increased five times faster than the consumer price and three times the construction cost. Clonts [4] predicted the land price of Virginia, at the outer edge of Washington, D.C., and found that variables related to urban development explained 30% of the deviation in the value of land and improvements. Adams et al. [27] studied the movement of “underdone” land prices in the Philadelphia edge between 1948 and 1962; they found that after adjusting for various characteristics of the land, prices rose between 13 and 16%, respectively. Their findings stated “long-run tendency of prices is close to a normal return in accord with the notion that the development trend of Northwest Philadelphia was anticipated early and capitalized into real estate values.” That is, the verification is consistent with what would be expected in a well-functioning market [28].

In a historical sense, the association between the value of uptown versus agricultural land has been looked at by Maisel [29] and Schmid [26]. Maisel reported that land value in San Francisco was ten times greater than that of agricultural land,

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