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Does a farmland zoning program impact farm income: empirical evidence from farm households in Taiwan

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  • Hung-Hao Chang
  • Tzu-Chin Lin

Abstract

Does farmland zoning affect farm income, and why? This study addresses these questions using a case study in Taiwan. We use a unique farmland-level dataset and apply the regression discontinuity design to quantify the effects of zoning on farm income. We find that the zoning program decreases farm income. The programme effects are heterogeneous, as they are more pronounced for farms in the higher percentiles of the farm income distribution. Moreover, a larger effect is found for elderly farm operators. Concerning the mechanism, we argue that the zoning program generated an optional benefit or wealth effect for eligible farms. This wealth effect then reallocates family labour to off-farm jobs. Consequently, the zoning program reduces income from farming.

Suggested Citation

  • Hung-Hao Chang & Tzu-Chin Lin, 0. "Does a farmland zoning program impact farm income: empirical evidence from farm households in Taiwan," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(5), pages 1621-1643.
    • Handle: RePEc:oup:erevae:v:47:y::i:5:p:1621-1643.
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    File URL: http://hdl.handle.net/10.1093/erae/jbaa002
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    Cited by:

    1. Benxi Lin & Zongjian Lin & Yu Yvette Zhang & Weiping Liu, 2018. "The Impact of the New Rural Pension Scheme on Retirement Sustainability in China: Evidence of Regional Differences in Formal and Informal Labor Supply," Sustainability, MDPI, vol. 10(12), pages 1-7, November.
    2. Ning, Manxiu & Gong, Jinquan & Zheng, Xuhui & Zhuang, Jun, 2016. "Does New Rural Pension Scheme decrease elderly labor supply? Evidence from CHARLS," China Economic Review, Elsevier, vol. 41(C), pages 315-330.
    3. Chang, Hung-Hao & Lee, Brian & Hsieh, Yi-Ting, 2021. "Participation in afforestation programs and the distribution of forest farm income," Forest Policy and Economics, Elsevier, vol. 129(C).

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