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Distributional impacts of conservation on land prices: Evidence from Natura 2000

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  • Ahlvik, Lassi
  • van Kooten, Sebastiaan

Abstract

This paper studies the costs and distributional impacts of the Natura 2000 network. We estimate how land use restrictions are capitalized into property prices in Finland by combining data on land transactions with the roll-out of the protection network. Our results indicate a sizable negative effect on forest and agricultural land and a moderate negative effect on unbuilt lots inside conservation areas. The negative effects are more pronounced in socio-economically deprived areas. In contrast, we find a positive effect on built properties both inside and in near vicinity of the protected areas. The net economic costs of Natura 2000 were moderate, but it had a clear distributional impact, reallocating rents from landowners to house and cabin owners.

Suggested Citation

  • Ahlvik, Lassi & van Kooten, Sebastiaan, 2024. "Distributional impacts of conservation on land prices: Evidence from Natura 2000," CEPR Discussion Papers 19400, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19400
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    More about this item

    Keywords

    Biodiversity; Environmental policy; Distributional effects; Environmental justice;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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