Transfer of Development Rights: An Analysis of a New Land Use Policy Tool

Abstract

Abstract The issues in establishing and administering a transfer of development rights program are discussed, and an hypothetical program is empirically analyzed. In the case study, administrative assignment of development rights and definition of development unit significantly affected the distribution of program costs. Full compensation to restricted landowners would have required widely fluctuating development right prices. Initial cost burdens varied with type of development as well as within development categories. Timing of development right supply and demand may create problems in the market. Although the TDR concept is promising, many practical difficulties remain.