Gradual Land-use Change in New Zealand: Results from a Dynamic Econometric Model

Suzi Kerr and Alex Olssen ()
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Alex Olssen: Motu Economic and Public Policy Research

No 12-06, Working Papers from Motu Economic and Public Policy Research

Abstract: Rural land use is important for New Zealand’s economic and environmental outcomes. Using a dynamic econometric model and recent New Zealand data, we estimate the response of land use to changing economic returns as proxied by relevant commodity prices. Because New Zealand is small, export prices are credibly exogenous. We show that land use responses can be slow. Our result implies that policy-induced land-use change is likely to be slow or costly.

Keywords: Land use; New Zealand; time series (search for similar items in EconPapers)
JEL-codes: Q15 Q24 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2012-05
New Economics Papers: this item is included in nep-agr and nep-env
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Citations: View citations in EconPapers (18)

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