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Urbanization and the Viability of Local Agricultural Economies

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  • JunJie Wu
  • Monica Fisher
  • Unai Pascual

Abstract

Urbanization presents both opportunities and challenges for farmers and farm-supporting sectors on the urban fringe. This paper examines the effects of urbanization on the viability of input suppliers and output processors and on the cost and profitability of farming. An analytical model is developed to provide insights into such effects. This model motivates a multiple-equation empirical model that we estimate using county-level panel data for California, Idaho, Oregon, and Washington. Results provide evidence that urbanization has a significant impact on agricultural infrastructure, farm production costs, and net farm income and suggest that agriculture-related opportunities of urbanization outweigh the challenges

Suggested Citation

  • JunJie Wu & Monica Fisher & Unai Pascual, 2011. "Urbanization and the Viability of Local Agricultural Economies," Land Economics, University of Wisconsin Press, vol. 87(1), pages 109-125.
    • Handle: RePEc:uwp:landec:v:87:y:2011:i:1:p:109-125
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    Cited by:

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    2. Barnes, Andrew P. & Thomson, Steven G. & Ferreira, Joana, 2020. "Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems," Land Use Policy, Elsevier, vol. 96(C).
    3. Fournier, Anne J., 2018. "Direct-selling farming and urban externalities: What impact on product quality and market size?," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 97-111.
    4. Elias Giannakis & Sophia Efstratoglou & Artemis Antoniades, 2018. "Off-Farm Employment and Economic Crisis: Evidence from Cyprus," Agriculture, MDPI, vol. 8(3), pages 1-11, March.
    5. Stéphane De Cara & Anne Fournier & Carl Gaigné, 2011. "Feeding the cities and greenhouse gas emissions: a new economic geography approach," Working Papers 1109, Chaire Economie du climat.
    6. Simon Cornée & Madeg Le Guernic & Damien Rousselière, 2020. "Governing Common-Property Assets: Theory and Evidence from Agriculture," Journal of Business Ethics, Springer, vol. 166(4), pages 691-710, November.
    7. Baba, S.H. & Wani, M.H. & Saraf, S.A., 2015. "Structural Changes Of Land-Use, Urbanization And Agricultural Land-Use Intensity In Mountains: Evidences From Jammu & Kashmir-India," 2015 Conference, August 9-14, 2015, Milan, Italy 211192, International Association of Agricultural Economists.
    8. Debela, Diriba Dadi & Stellmacher, Till & Azadi, Hossein & Kelboro, Girma & Lebailly, Philippe & Ghorbani, Mehdi, 2020. "The Impact of Industrial Investments on Land Use and Smallholder Farmers’ Livelihoods in Ethiopia," Land Use Policy, Elsevier, vol. 99(C).
    9. Deng, Xiangzheng & Gibson, John, 2019. "Improving eco-efficiency for the sustainable agricultural production: A case study in Shandong, China," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 394-400.
    10. Liu, Jingming & Hou, Xianhui & Wang, Zhanqi & Shen, Yue, 2021. "Study the effect of industrial structure optimization on urban land-use efficiency in China," Land Use Policy, Elsevier, vol. 105(C).
    11. Horst, Megan & Gwin, Lauren, 2018. "Land access for direct market food farmers in Oregon, USA," Land Use Policy, Elsevier, vol. 75(C), pages 594-611.
    12. Yanlei Gao & Yuan Tian & Guangwan Tan & Xiudong Wang, 2023. "Impact of Urbanization on Cropping Structure: Empirical Evidence from China," Agriculture, MDPI, vol. 13(6), pages 1-17, May.
    13. Zhenghui Li & Fanqi Zou & Yong Tan & Jinhui Zhu, 2021. "Does Financial Excess Support Land Urbanization—An Empirical Study of Cities in China," Land, MDPI, vol. 10(6), pages 1-17, June.
    14. 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.
    15. Emery N. Castle & JunJie Wu & Bruce A. Weber, 2011. "Place Orientation and Rural–Urban Interdependence," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(2), pages 179-204.
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    17. Li Jiang & Zhihui Li, 2016. "Urbanization and the Change of Fertilizer Use Intensity for Agricultural Production in Henan Province," Sustainability, MDPI, vol. 8(2), pages 1-12, February.

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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