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Purchase Of Development Rights (Pdr) Programs: Have We Paid Too Much?

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  • Wang, Qingbin
  • Silver, Brian

Abstract

While many states such as Vermont have adopted the Purchase of Development Rights (PDR) programs to protect farmland, few studies have examined how the prices of such development rights are determined and whether the prices are close to the market value. Using data from the state of Vermont, this study first examines the effects of development restrictions on the market price of rural and semi-rural properties and then addresses the question of whether the prices paid for development rights are close to the market value. Our results based on an hedonic model suggest that development restrictions do reduce the market value of rural and semi-rural properties in Northern Vermont but the prices paid by Vermont's PDR programs are significantly higher than the estimated market value.

Suggested Citation

  • Wang, Qingbin & Silver, Brian, 2000. "Purchase Of Development Rights (Pdr) Programs: Have We Paid Too Much?," 2000 Annual meeting, July 30-August 2, Tampa, FL 21837, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21837
    DOI: 10.22004/ag.econ.21837
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    References listed on IDEAS

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    1. Zvi Griliches, 1961. "Hedonic Price Indexes for Automobiles: An Econometric of Quality Change," NBER Chapters, in: The Price Statistics of the Federal Goverment, pages 173-196, National Bureau of Economic Research, Inc.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Goodman, Allen C., 1998. "Andrew Court and the Invention of Hedonic Price Analysis," Journal of Urban Economics, Elsevier, vol. 44(2), pages 291-298, September.
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    Cited by:

    1. Anderson, Kathryn & Weinhold, Diana, 2005. "Do Conservation Easements Reduce Land Prices? The Case of South Central Wisconsin," Staff Papers 12670, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.

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