IDEAS home Printed from https://ideas.repec.org/a/ags/ajosrd/342122.html
   My bibliography  Save this article

A Hedonic Analysis of Agricultural Land Prices in Pakistan's Peshawar District

Author

Listed:
  • Khan, Salman
  • Ali, Ghaffar
  • Shah, Syed Attaullah
  • Jan, Abbas Ullah
  • Jan, Dawood
  • Fayaz, M.

Abstract

This study investigates determinants for agricultural land prices in Peshawar district of Pakistan. A linear hedonic model is used to analyze data set on sale prices of agricultural land parcels and their agricultural, location and environmental characteristics. Results show that agricultural land price is affected positively by soil fertility, amount of irrigation water and closeness to agricultural market. Among location characteristics, distance to city, distance to main road and distance to nearest houses have significant effects on land prices. Agricultural land located closer to city, main road or houses has significantly higher price compared to a more distant land. Environmental degradation such as polluted freshwater bodies has negative effect on nearby agricultural land prices. Based on these findings and review of relevant literature, the study recommends government intervention for conservation of agricultural land, investment in developing agricultural infrastructure such as dams, irrigation canals, roads, transport, agricultural markets, etc., and provision of subsidized fertilizers and other inputs to increase farmers‟ returns and change their perception to favour using their land for agriculture.

Suggested Citation

  • Khan, Salman & Ali, Ghaffar & Shah, Syed Attaullah & Jan, Abbas Ullah & Jan, Dawood & Fayaz, M., 2015. "A Hedonic Analysis of Agricultural Land Prices in Pakistan's Peshawar District," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 6(04), January.
    • Handle: RePEc:ags:ajosrd:342122
    DOI: 10.22004/ag.econ.342122
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/342122/files/A%20Hedonic%20Analysis%20of%20Agricultural%20Land%20Prices%20in%20Pakistan%E2%80%99s%20Peshawar%20District.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.342122?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Plantinga, Andrew J. & Lubowski, Ruben N. & Stavins, Robert N., 2002. "The effects of potential land development on agricultural land prices," Journal of Urban Economics, Elsevier, vol. 52(3), pages 561-581, November.
    2. Drescher, Klaus & Henderson, Jason R. & McNamara, Kevin T., 2001. "Farmland Price Determinants," 2001 Annual meeting, August 5-8, Chicago, IL 20685, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Richard C. Ready & Charles W. Abdalla, 2005. "The Amenity and Disamenity Impacts of Agriculture: Estimates from a Hedonic Pricing Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 314-326.
    4. Philip Kostov, 2009. "A Spatial Quantile Regression Hedonic Model of Agricultural Land Prices," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(1), pages 53-72.
    5. D Maddison, 2000. "A hedonic analysis of agricultural land prices in England and Wales," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(4), pages 519-532, December.
    6. Pam Guiling & B. Wade Brorsen & Damona Doye, 2009. "Effect of Urban Proximity on Agricultural Land Values," Land Economics, University of Wisconsin Press, vol. 85(2), pages 252-264.
    7. Philip Kostov, 2009. "Spatial dependence in agricultural land prices: does it exist?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 347-353, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salman Khan & Ghaffar Ali & Syed Attaullah Shah & Abbas Ullah Jan & Dawood Jan & M. Fayaz, 2016. "A hedonic analysis of agricultural land prices in Pakistan`s Peshawar district," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(4), pages 59-67, April.
    2. O'Donoghue, Cathal & Lopez, Jeremey & O’Neill, Stephen & Ryan, Mary, 2015. "AHedonic Price Model of Self-Assessed Agricultural Land Values," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212639, European Association of Agricultural Economists.
    3. Ayala Wineman & Thomas S Jayne, 2018. "Land Prices Heading Skyward? An Analysis of Farmland Values across Tanzania," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 187-214.
    4. Ay, Jean-Sauveur & Latruffe, Laure, 2013. "The Empirical Content of the Present Value Model: A survey of the instrumental uses of farmland prices," Working papers 157112, Factor Markets, Centre for European Policy Studies.
    5. Chun-Chang Lee & Yi-Xin Chen & Yun-Ling Wu & Wen-Chih Yeh & Chih-Min Liang, 2020. "Multilevel Analysis of the Pressure of Agricultural Land Conversion, Degree of Urbanization and Agricultural Land Prices in Taiwan," Land, MDPI, vol. 9(12), pages 1-21, November.
    6. Marques, Felipe César & Telles, Tiago Santos, 2023. "Spatial effects are determinants of agricultural land prices in Brazil," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 61(3), January.
    7. Uematsu, Hiroki & Mishra, Ashok K., 2012. "The Impact of Natural Amenity on Farmland Values: A Quantile Regression Approach," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119804, Southern Agricultural Economics Association.
    8. Lautrup, M. & Panduro, T.E. & Olsen, J.V. & Pedersen, M.F. & Jacobsen, J.B., 2023. "Is there more to trees than timber? Estimating the private amenity value of forests using a hedonic land model for combined agricultural properties," Forest Policy and Economics, Elsevier, vol. 146(C).
    9. Ritter, Matthias & Huttel, Silke & Odening, Martin & Seifert, Stefan, 2019. "Revisiting The Relationship Between Land Price And Parcel Size," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285062, Australian Agricultural and Resource Economics Society (AARES).
    10. Coisnon, Thomas & Oueslati, Walid & Salanié, Julien, 2014. "Urban sprawl occurrence under spatially varying agricultural amenities," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 38-49.
    11. Kathleen P. Bell & Timothy J. Dalton, 2007. "Spatial Economic Analysis in Data‐Rich Environments," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 487-501, September.
    12. Tione, Sarah E. & Holden, Stein T., 2020. "Urban proximity, demand for land and land shadow prices in Malawi," Land Use Policy, Elsevier, vol. 94(C).
    13. Yu-Hui Chen & Chun-Lin Lee & Guan-Rui Chen & Chiung-Hsin Wang & Ya-Hui Chen, 2018. "Factors Causing Farmland Price-Value Distortion and Their Implications for Peri-Urban Growth Management," Sustainability, MDPI, vol. 10(8), pages 1-18, August.
    14. Wendong Zhang & Cynthia J. Nickerson, 2015. "Housing Market Bust and Farmland Values: Identifying the Changing Influence of Proximity to Urban Centers," Land Economics, University of Wisconsin Press, vol. 91(4), pages 605-626.
    15. Reed, L.L. & Kleynhans, Theo E., 2009. "Agricultural land purchases for alternative uses – evidence from two farming areas in the Western Cape province, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-20, September.
    16. Tione, Sarah E. & Holden , Stein T., 2019. "Urban proximity, demand for land and land prices in Malawi," CLTS Working Papers 1/19, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    17. Jean-Sauveur Ay & Jean-Marc Brayer & Jean Cavailhès & Pierre Curmi & Mohamed Hilal & Marjorie Ubertosi, 2012. "La valeur des attributs naturels des terres agricoles de Côte-d'Or," INRA UMR CESAER Working Papers 2012/1, INRA UMR CESAER, Centre d'’Economie et Sociologie appliquées à l'’Agriculture et aux Espaces Ruraux.
    18. Wang, Yahua & Chen, Sicheng & Araral, Eduardo, 2021. "The mediated effects of urban proximity on collective action in the commons: Theory and evidence from China," World Development, Elsevier, vol. 142(C).
    19. Ma, Shan & Swinton, Scott M., 2011. "Valuation of ecosystem services from rural landscapes using agricultural land prices," Ecological Economics, Elsevier, vol. 70(9), pages 1649-1659, July.
    20. Richard T. Melstrom, 2021. "The Effect of Land Use Restrictions Protecting Endangered Species on Agricultural Land Values," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 162-184, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajosrd:342122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesstea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.