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A Spatial Bayesian Hedonic Pricing Model of Farmland Values

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  • Cotteleer, Geerte
  • Stobbe, Tracy
  • van Kooten, G. Cornelis

Abstract

In 1973, British Columbia created the Agricultural Land Reserve (ALR) to protect farmland from development. This study investigates whether the ALR has been effective near the city of Victoria. Therefore, we employ a GIS-based hedonic pricing model and quantify ALR specific measures. Bayesian Model Averaging in combination with Markov Chain Monte Carlo Model Composition are used to address specification uncertainty. Results show that zoning schemes are partly credible. Zoned farmland sells for lower prices than other farmland. However, farmland located closer to the city of Victoria is priced higher and hobby farmers pay higher prices than conventional farmers.

Suggested Citation

  • Cotteleer, Geerte & Stobbe, Tracy & van Kooten, G. Cornelis, 2008. "A Spatial Bayesian Hedonic Pricing Model of Farmland Values," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44137, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44137
    DOI: 10.22004/ag.econ.44137
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    References listed on IDEAS

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    1. Jean Cavailhès & Pierre Wavresky, 2003. "Urban influences on periurban farmland prices [[L'influence urbaine sur le prix des terres périurbaines]]," Post-Print hal-02670737, HAL.
    2. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
    3. 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..
    4. Olivier Parent & James Lesage, 2005. "Bayesian Model Averaging for Spatial Econometric Models," Post-Print hal-00375489, HAL.
    5. Colwell, Peter F & Munneke, Henry J, 1999. "Land Prices and Land Assembly in the CBD," The Journal of Real Estate Finance and Economics, Springer, vol. 18(2), pages 163-180, March.
    6. Jean CavailhËs & Pierre Wavresky, 2003. "Urban influences on periurban farmland prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(3), pages 333-357, September.
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    Citations

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    Cited by:

    1. Griffin, Terry & Ibendahl, Gregg & Mark, Tyler, 2015. "How Spatially Clustered are State-level Farmland Values?," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015.
    2. Khalid, Haniza & Lloyd, Timothy Adrian & Morgan, Christopher Wyn, 2013. "The Impact of Economic Transformation and the Credibility of Planning Control on Agricultural Land Values," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(2).
    3. Khalid Haniza, 2015. "Spatial heterogeneity and spatial bias analyses in hedonic price models: some practical considerations," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 28(28), pages 113-128, June.
    4. Khalid, Haniza, 2017. "Segmenting Agricultural Land Market According to Development Potential: A Latent Class Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 51(1), pages 145-158.
    5. Jannet C. Bencure & Nitin K. Tripathi & Hiroyuki Miyazaki & Sarawut Ninsawat & Sohee Minsun Kim, 2019. "Development of an Innovative Land Valuation Model (iLVM) for Mass Appraisal Application in Sub-Urban Areas Using AHP: An Integration of Theoretical and Practical Approaches," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    6. Khalid, Haniza & Lloyd, Timothy Adrian & Morgan, Christopher Wyn, 2013. "The Impact of Economic Transformation and the Credibility of Planning Control on Agricultural Land Values," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(02), pages 1-12, May.
    7. Pinto, Allan & Griffin, Terry W., 2022. "Detecting bubbles via single time-series variable: applying spatial specification tests to farmland values," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322534, Agricultural and Applied Economics Association.

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