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Impacts of Agri-Environmental Policies on Land Allocation and Prices

Author

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  • Guyomard, Herve
  • Lankoski, Jussi E.
  • Ollikainen, Markku

Abstract

We used Ricardian framework with heterogeneous land quality to analyse how policies used to support farm incomes, reduce negative agri-environmental externalities and enhance the provision of positive externalities influence land allocation decisions and land prices. Four agri-environmental policy instruments are considered: a uniform area payment, a quality-dependent area payment, a mandatory buffer strip policy and a voluntary buffer strip payment. We also analyse how general tax and monetary policies may affect agricultural land prices. The theoretical framework is illustrated by an application to Finnish agriculture.

Suggested Citation

  • Guyomard, Herve & Lankoski, Jussi E. & Ollikainen, Markku, 2005. "Impacts of Agri-Environmental Policies on Land Allocation and Prices," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24466, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24466
    DOI: 10.22004/ag.econ.24466
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    References listed on IDEAS

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    1. B. L. Gardner & G. C. Rausser (ed.), 2002. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 2, number 4.
    2. Jussi Lankoski & Erik Lichtenberg & Markku Ollikainen, 2010. "Agri-Environmental Program Compliance in a Heterogeneous Landscape," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 1-22, September.
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    5. Jussi Lankoski & Markku Ollikainen, 2003. "Agri-environmental externalities: a framework for designing targeted policies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 51-75, March.
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    7. Barry Falk & Bong-Soo Lee, 1998. "Fads versus Fundamentals in Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 696-707.
    8. B. L. Gardner & G. C. Rausser (ed.), 2002. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 2, number 3.
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    11. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
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