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Assessing the income value of private amenities in California oak woodlands

Author

Listed:
  • Jose L. Oviedo
  • Lynn Huntsinger
  • Pablo Campos
  • Alejandro Caparrós

Abstract

A contingent valuation technique was applied to a 2004 sample of oak woodland landowners in California to assess its usefulness in estimating the non-market income and land price value of oak woodland properties. Non-market benefits have long been considered an important influence on rangeland landowners, but beyond comparing market production and land price, few studies have attempted to place a monetary value on them. Landowners were asked to estimate the maximum amount of earnings that they were willing to forgo before selling their property to invest in more commercially profitable non-agrarian assets, and the proportion of the price of their land that they think is explained by the environmental and/or amenity benefits that they derive from their land. The results showed that, on average, they were willing to pay $54 per acre for their land amenities and that 57% of the land market price is explained by these amenities. Regression analysis reveals that the value of amenities to landowners increases as the stated woodland market price increases, but gets saturated as property size increases. The proposed approach sheds light on landowner behavior and values and offers insights for outreach and policy development for private oak woodlands, and should be further developed and tested.

Suggested Citation

  • Jose L. Oviedo & Lynn Huntsinger & Pablo Campos & Alejandro Caparrós, 2011. "Assessing the income value of private amenities in California oak woodlands," Working Papers 1110, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    • Handle: RePEc:ipp:wpaper:1110
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    References listed on IDEAS

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    More about this item

    Keywords

    contingent valuation; landowners; non-market valuation; private environmental benefits;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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