Green parties and building permissions: Evidence from Bavarian municipalities

Arbeitspapier

This paper studies whether the rise of environmental parties during the last few decades can provide an explanation for reduced housing supply. Specifically, we examine the impact of Green Party presence on short-term housing supply in Bavarian municipalities from 1987 to 2019. Using a set of staggered difference-in-differences approaches and a large panel data set, we find that the entry of Green Party members into municipal councils leads to an approximate 5.6% decrease in the short-term issuance of building permits. Our results suggest that even in minority positions, Green Party members can influence local decision-making through highlighting the negative externalities associated with construction projects. Moreover, this influence may lead to policy convergence, where other parties adopt some elements of the Green Party's environmental agenda to appeal to environmentally conscious voters. Overall, our study contributes to understanding the trade-offs between housing supply and environmental protection in decentralized democratic settings and sheds light on the role of Green Party members in shaping local land use policy.

Object Details

• ISBN: 978-3-96973-221-2
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ruhr Economic Papers ; No. 1052

Classification and Topics

• Classification: Wirtschaft ; State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects ; Intergovernmental Relations; Federalism; Secession ; Housing Supply and Markets ; Production Analysis and Firm Location: Government Policy ; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
• Subject: Party effects ; housing supply ; land use policies ; natural resources ; difference-indifferences

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hufschmidt, Patrick
• Event: Veröffentlichung
• (who): RWI - Leibniz-Institut für Wirtschaftsforschung
• (where): Essen
• (when): 2023

Further information

• DOI: doi:10.4419/96973221
• Handle: http://hdl.handle.net/10419/280424
• Last update: 10.03.2025, 11:43 AM CET