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The Effects of Environmental Amenities on Agricultural Land Values

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  • James R. Wasson
  • Donald M. McLeod
  • Christopher T. Bastian
  • Benjamin S. Rashford

Abstract

Ascribing agricultural land values solely to productive capacity does not accurately capture the impact of environmental amenities on western land prices. We analyze rural land prices in Wyoming using a hedonic price model. Geographic information systems data includes on-parcel wildlife and fish habitat, scenic view attributes, and distance to protected federal lands. Feasible generalized least squares is used to address spatial autocorrelation and heteroskedasticity. Results indicate that environmental amenities contribute to land values. Examination of the marginal effects of amenities on parcel price furthers these conclusions. Environmental amenities contributions to land prices may guide resource allocation decisions across diverse demands.

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  • James R. Wasson & Donald M. McLeod & Christopher T. Bastian & Benjamin S. Rashford, 2013. "The Effects of Environmental Amenities on Agricultural Land Values," Land Economics, University of Wisconsin Press, vol. 89(3), pages 466-478.
    • Handle: RePEc:uwp:landec:v:89:y:2013:iii:1:p:466-478
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    7. Foster, W., 2018. "Stability of the Ricardian land value model: Chile during rapid economic growth," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277125, International Association of Agricultural Economists.
    8. José L Oviedo & Pablo Campos & Alejandro Caparrós, 2022. "Contingent valuation of landowner demand for forest amenities: application in Andalusia, Spain," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(3), pages 615-643.
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    10. Choumert, Johanna & Phélinas, Pascale, 2014. "A Hedonic Analysis Of Agricultural Land Values In A Gm Soybean Area Of Argentina," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182750, European Association of Agricultural Economists.
    11. Kualwik, Jacek, 2016. "Selected problems of farmland valuation and setting rents for its lease," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 252639, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
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    JEL classification:

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

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