Evaluating the application of planning legislation : the Resource Management Act 1991 and forestry investment

Abstract

In 1991, the New Zealand government enacted the Resource Management Act (RMA). The RMA directs councils to write planning rules for their district based on the effects of activities on the environment. This study is concerned with evaluating how the RMA has been applied to forestry by the District and City Councils and the effect that this has had on forestry investment. An analysis of 57 District Plans written using RMA guidelines is used to derive an index that captures the relative restrictiveness of the treatment of forestry in a District Plan. Cluster analysis is used to look for differences in the application of forestry rules. A seven cluster solution showed provided evidence for differences in forestry rules. Three clusters had rules that discouraged forestry investment. The remaining four clusters had rules that encouraged forestry investment. However, econometric analysis using a negative binomial estimator, found that the RMA rules were insignificant and the major factors affecting forestry investment were population density, number and size of farm and experience in forestry.