IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v82y2006i1p112-123.html
   My bibliography  Save this article

Rural Land Use: Traditional Agriculture or Forestry?

Author

Listed:
  • Jasmina Behan
  • Kieran McQuinn
  • Maurice J. Roche

Abstract

The signing of the Kyoto Protocol and the official recognition of forestry’s capacity to sequester carbon has prompted considerable interest, within the European Union, in forestry as a competing land use application. However, despite large increases in grants to forestry, afforestation rates, in certain EU countries, are below national targets. In this paper, we employ a real options model to theoretically explain why farmers may be slow to switch land from traditional agriculture to forestry. The theoretical model is then used to motivate an empirical dynamic panel data model and both models are applied to Irish data.

Suggested Citation

  • Jasmina Behan & Kieran McQuinn & Maurice J. Roche, 2006. "Rural Land Use: Traditional Agriculture or Forestry?," Land Economics, University of Wisconsin Press, vol. 82(1), pages 112-123.
    • Handle: RePEc:uwp:landec:v:82:y:2006:i:1:p:112-123
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/82/1/112
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Impacts of Incorporating Land Exchanges Between Forestry and Agriculture in Sector Models," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 30(2), pages 389-401, December.
    2. Abebayehu Tegene & Keith Wiebe & Betsey Kuhn, 1999. "Irreversible Investment Under Uncertainty: Conservation Easements and the Option to Develop Agricultural Land," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 203-219, May.
    3. Siobhan McCarthy & Alan Matthews & Brendan Riordan, 2002. "Determinants of Private Afforestation in the Republic of Ireland," Trinity Economics Papers 20023, Trinity College Dublin, Department of Economics.
    4. Bruce A. McCarl & Uwe A. Schneider, 2000. "U.S. Agriculture's Role in a Greenhouse Gas Emission Mitigation World: An Economic Perspective," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(1), pages 134-159.
    5. Andrew J. Plantinga & Douglas J. Miller, 2001. "Agricultural Land Values and the Value of Rights to Future Land Development," Land Economics, University of Wisconsin Press, vol. 77(1), pages 56-67.
    6. Brent Sohngen & Robert Mendelsohn, 2003. "An Optimal Control Model of Forest Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 448-457.
    7. Barrett, Alan & Trace, Fergal, 1999. "The Impact of Agricultural and Forestry Subsidies on Land Prices and Land Uses in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS35.
    8. Emily Wiemers & Jasmina Behan, 2004. "Farm Forestry Investment in Ireland Under Uncertainty," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 305-320.
    9. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    10. Behan, Jasmine & McQuinn, Kieran, 2003. "Projecting Net Greenhouse Gas Emissions from Irish Agriculture and Forestry," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2003(1-Spring), pages 1-11.
    11. Robert N. Stavins, 1999. "The Costs of Carbon Sequestration: A Revealed-Preference Approach," American Economic Review, American Economic Association, vol. 89(4), pages 994-1009, September.
    12. Stavins, Robert N & Jaffe, Adam B, 1990. "Unintended Impacts of Public Investments on Private Decisions: The Depletion of Forested Wetlands," American Economic Review, American Economic Association, vol. 80(3), pages 337-352, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diekmann, Anton & Wolbert-Haverkamp, Matthias & Mußhoff, Oliver, 2014. "Die Bewertung der Umstellung einer einjährigen Ackerkultur auf den Anbau von Miscanthus – Eine Anwendung des Realoptionsansatzes," Department of Agricultural and Rural Development (DARE) Discussion Papers 260812, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Dumortier, Jerome & Kauffman, Nathan & Hayes, Dermot J., 2015. "Uncertainty and Time-to-Build in Bioenergy Crop Production," ISU General Staff Papers 201501010800001019, Iowa State University, Department of Economics.
    3. Vidyaratne, Herath & Vij, Akshay & Regan, Courtney M., 2020. "A socio-economic exploration of landholder motivations to participate in afforestation programs in the Republic of Ireland: The role of irreversibility, inheritance and bequest value," Land Use Policy, Elsevier, vol. 99(C).
    4. Tee, James & Scarpa, Riccardo & Marsh, Dan & Guthrie, Graeme, 2012. "Valuation of Carbon Forestry and the New Zealand Emissions Trading Scheme: A Real Options Approach Using the Binomial Tree Method," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131066, International Association of Agricultural Economists.
    5. Dumortier, Jerome & Kauffman, Nathan & Hayes, Dermot J., 2017. "Production and spatial distribution of switchgrass and miscanthus in the United States under uncertainty and sunk cost," Energy Economics, Elsevier, vol. 67(C), pages 300-314.
    6. Federica Isola & Sabrina Lai & Federica Leone & Corrado Zoppi, 2022. "Strengthening a Regional Green Infrastructure through Improved Multifunctionality and Connectedness: Policy Suggestions from Sardinia, Italy," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    7. Dumortier, Jerome Robert Florian, 2011. "The impact of forest offset credits under a stochastic carbon price on agriculture using a rational expectations and real options framework," ISU General Staff Papers 201101010800001160, Iowa State University, Department of Economics.
    8. Anna M. Klepacka & Andrzej A. Romaniuk & Janusz Gajda & Ewa E. Chećko, 2025. "From Farms to Forests: An Exploration of Afforestation Efforts in Poland Under the Rural Development Programme (2007–2020)," Sustainability, MDPI, vol. 17(3), pages 1-19, January.
    9. Sabrina Lai & Federica Leone & Corrado Zoppi, 2020. "Spatial Distribution of Surface Temperature and Land Cover: A Study Concerning Sardinia, Italy," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    10. Nizalov, Denys & Thornsbury, Suzanne & Loveridge, Scott & Woods, Mollie & Zadorozhna, Olha, 2016. "Security of property rights and transition in land use," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 76-91.
    11. Stefanie Engel & Charles Palmer & Luca Taschini & Simon Urech, 2012. "Cost-effective payments for reducing emissions from deforestation under uncertainty," GRI Working Papers 72, Grantham Research Institute on Climate Change and the Environment.
    12. Hyytiainen, Kari & Leppanen, J. & Pahkasalo, T., 2008. "Economic analysis of field afforestation and forest clearance for cultivation in Finland," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44178, European Association of Agricultural Economists.
    13. James Tee & Riccardo Scarpa & Dan Marsh & Graeme Guthrie, 2014. "Forest Valuation under the New Zealand Emissions Trading Scheme: A Real Options Binomial Tree with Stochastic Carbon and Timber Prices," Land Economics, University of Wisconsin Press, vol. 90(1), pages 44-60.
    14. Federica Isola & Federica Leone & Corrado Zoppi, 2022. "Mapping of Ecological Corridors as Connections between Protected Areas: A Study Concerning Sardinia, Italy," Sustainability, MDPI, vol. 14(11), pages 1-31, May.
    15. Haverkamp, Matthias Wolbert & Musshoff, Oliver, 2013. "Are short rotation coppices an alternative to traditional agricultural land use in Germany? A real options approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152184, Australian Agricultural and Resource Economics Society.
    16. Stefanie Engel & Charles Palmer & Luca Taschini & Simon Urech, 2015. "Conservation Payments under Uncertainty," Land Economics, University of Wisconsin Press, vol. 91(1), pages 36-56.
    17. Glenk, Klaus & Schaafsma, Marije & Moxey, Andrew & Martin-Ortega, Julia & Hanley, Nick, 2014. "A framework for valuing spatially targeted peatland restoration," Ecosystem Services, Elsevier, vol. 9(C), pages 20-33.

    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. Maurice Roche & JASMINA BEHAN, & KIERAN MCQUINN, 2003. "Trees Or Trotters?," Economics Department Working Paper Series n1301003, Department of Economics, National University of Ireland - Maynooth.
    2. Dumortier, Jerome Robert Florian, 2011. "The impact of forest offset credits under a stochastic carbon price on agriculture using a rational expectations and real options framework," ISU General Staff Papers 201101010800001160, Iowa State University, Department of Economics.
    3. Latta, Gregory & Adams, Darius M. & Alig, Ralph J. & White, Eric, 2011. "Simulated effects of mandatory versus voluntary participation in private forest carbon offset markets in the United States," Journal of Forest Economics, Elsevier, vol. 17(2), pages 127-141, April.
    4. Ruben N. Lubowski & Andrew J. Plantinga & Robert N. Stavins, 2008. "What Drives Land-Use Change in the United States? A National Analysis of Landowner Decisions," Land Economics, University of Wisconsin Press, vol. 84(4), pages 529-550.
    5. Schneider, Uwe A. & McCarl, Bruce A. & Schmid, Erwin, 2007. "Agricultural sector analysis on greenhouse gas mitigation in US agriculture and forestry," Agricultural Systems, Elsevier, vol. 94(2), pages 128-140, May.
    6. Robert N. Stavins, 1998. "A Methodological Investigation of the Costs of Carbon Sequestration," Journal of Applied Economics, Taylor & Francis Journals, vol. 1(2), pages 231-277, November.
    7. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    8. Mason, Charles F. & Plantinga, Andrew J., 2011. "Contracting for Impure Public Goods: Carbon Offsets and Additionality," Sustainable Development Papers 101290, Fondazione Eni Enrico Mattei (FEEM).
    9. David Walker, 2014. "The Economic Potential for Forest-Based Carbon Sequestration under Different Emissions Targets and Accounting Schemes," Working Papers 2014.02, School of Economics, La Trobe University.
    10. Michetti, Melania & Parrado, Ramiro, 2012. "Improving Land-use modelling within CGE to assess Forest-based Mitigation Potential and Costs," Climate Change and Sustainable Development 122862, Fondazione Eni Enrico Mattei (FEEM).
    11. Ovchinnikova, Natalia & Lynne, Gary D. & Sautter, John & Kruse, Colby, 2006. "What motivates farmers to sequester carbon: an empirical investigation," 2006 Annual meeting, July 23-26, Long Beach, CA 21288, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Pena-Levano, Luis & Taheripour, Farzad & Tyner, Wally, 2020. "Cost comparison of climate change mitigation options," Conference papers 333134, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. van Kooten, G. Cornelis & Sohngen, Brent, 2007. "Economics of Forest Ecosystem Carbon Sinks: A Review," International Review of Environmental and Resource Economics, now publishers, vol. 1(3), pages 237-269, September.
    14. Jean Cavailhès & Mohamed Hilal & Pierre Wavresky, 2011. "L’influence urbaine sur le prix des terres agricoles et ses conséquences pour l’agriculture," Économie et Statistique, Programme National Persée, vol. 444(1), pages 99-125.
    15. Herath, N. & Tyner, W.E., 2019. "Intended and unintended consequences of US renewable energy policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    16. Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
    17. Pablo C. Benítez & Timo Kuosmanen & Roland Olschewski & G. Cornelis van Kooten, 2006. "Conservation Payments under Risk: A Stochastic Dominance Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 1-15.
    18. Favero, Alice & Mendelsohn, Robert & Sohngen, Brent, 2016. "Carbon Storage and Bioenergy: Using Forests for Climate Mitigation," MITP: Mitigation, Innovation and Transformation Pathways 232215, Fondazione Eni Enrico Mattei (FEEM).
    19. Jepkemei, Busienei Vivian, 2010. "Potential Economic Value Of Carbon Sequestration In Kakamega Forest And Surrounding Farms," Research Theses 117803, Collaborative Masters Program in Agricultural and Applied Economics.
    20. Ovando, Paola & Caparrós, Alejandro, 2009. "Land use and carbon mitigation in Europe: A survey of the potentials of different alternatives," Energy Policy, Elsevier, vol. 37(3), pages 992-1003, March.

    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

    Statistics

    Access and download statistics

    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:uwp:landec:v:82:y:2006:i:1:p:112-123. 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: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    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.