Buyer-Type Effects in Conservation and Preservation Property Values

Jason Winfree, Jill J. McCluskey () and Ron Mittelhammer

The Journal of Real Estate Finance and Economics, 2006, vol. 33, issue 2, pages 167-179

Abstract: Properties can be bought by government agencies, land trusts, or private entities for conservation and preservation purposes, such as farmland preservation, wildlife refuges, other conservation, and cultural and historical preservation. There is variation in the dollars paid per acre across properties and across buyer type. An option value model based on future potential land uses is used to explain much of this variation. The data used in our analysis is sales transactions data for conservation and preservation purposes from throughout the United States. We find that much of the value of conservation properties is derived from future potential land uses, including housing, timber, recreation, and conservation. We confirm that public versus private buyers value options differently, which makes sense from a public good point of view, if markets are thin. Copyright Springer Science + Business Media, LLC 2006

Keywords: Land value; Preservation property; Option values (search for similar items in EconPapers)
Date: 2006
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