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Green Payment Programs and Farmland Prices—An Empirical Investigation

Author

Listed:
  • Tzong-Haw Lee

    (School of Economics and Management, Hubei Polytechnic University, No. 16 North Road, Guilin 435003, China)

  • Brian Lee

    (Program in Science, Technology and Environmental Policy, Princeton School of Policy and International Affairs, Princeton University, Princeton, NJ 08544, USA)

  • Yi-Ju Su

    (Department of Economics, Shih Hsin University, No.111, Sec. 1, Mu-Cha Rd., Wenshan Dist., Taipei 11645, Taiwan)

  • Hung-Hao Chang

    (Department of Agricultural Economics, National Taiwan University, No. 1 Roosevelt Road, Section 4, Taipei 10617, Taiwan)

Abstract

Research has examined the impact of green payment programs on agricultural and economic outcomes such as agricultural productivity and farm income. However, it is unclear whether these policies are capitalized into farmland prices. This paper provides some of the first evidence on the causal impact of green payment programs on farmland prices based on evidence from Taiwan. Using administrative farmland transactions data with the ordinary least squares (OLS) method and the semi-parametric smooth coefficient model (SCM), we find that green payment programs increase farmland prices by an average of 3.9 percentage points in townships that implemented the policy. Moreover, the program’s effects on farmland prices are not homogenous, varying by farmland size. The magnitude of this effect is more pronounced on rural farmland prices and across quantiles of the farmland size distribution.

Suggested Citation

  • Tzong-Haw Lee & Brian Lee & Yi-Ju Su & Hung-Hao Chang, 2022. "Green Payment Programs and Farmland Prices—An Empirical Investigation," Agriculture, MDPI, vol. 12(2), pages 1-11, February.
    • Handle: RePEc:gam:jagris:v:12:y:2022:i:2:p:207-:d:740282
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    References listed on IDEAS

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    6. Alfons Weersink & Steve Clark & Calum G. Turvey & Rakhal Sarker, 1999. "The Effect of Agricultural Policy on Farmland Values," Land Economics, University of Wisconsin Press, vol. 75(3), pages 425-439.
    7. Hellerstein, Daniel M., 2017. "The US Conservation Reserve Program: The evolution of an enrollment mechanism," Land Use Policy, Elsevier, vol. 63(C), pages 601-610.
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    Cited by:

    1. Brian Lee & Po-Yuan Cheng & Lih-Chyun Sun & Yi-Ting Hsieh & Hung-Hao Chang, 2022. "Does COVID-19 Affect Farmland Prices? How and Why?," Agriculture, MDPI, vol. 12(12), pages 1-12, December.

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