Working Paper: CEPR ID: DP15780
Authors: Pierre Magontier; Albert Soleolle; Elisabet Viladecans-Marsal
Abstract: Coastal development has advantages, such as job creation, and drawbacks,such as the loss of environmental amenities, for both residents and nonresidents.Local governments may prioritize their constituents' interests, resultingin suboptimal coastal development. We investigate how political alignment among neighboring mayors facilitates intergovernmental cooperation in the development of coastal areas. We leverage causal effects by applying a close-elections Regression Discontinuity Design to the universe of buildings in Spain. Municipalities with party-aligned mayors develop 46% less land than politically isolated ones, and politically homogeneous coastal areas develop less than fragmented ones. The effect is more salient for land closest to shore or previously occupied by forests, in municipalities with a large share of protected land, and for relevant environmental markers, such as air and bathing water pollution. These results underscore the importance of cooperative political endeavors in managing development spillovers, with environmental considerations assuming a central role.
Keywords: Local government; Land use policy; Political parties
JEL Codes: D72; H70; R52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| political alignment among local governments (H70) | less coastal development (R11) |
| politically homogeneous coastal areas (R23) | less land development (R52) |
| increase in party fragmentation (D79) | increased development (O11) |
| political alignment facilitates cooperation among neighboring municipalities (F55) | less coastal development (R11) |