Green Payment Programs and Farmland Prices—An Empirical Investigation

Tzong-Haw Lee, Brian Lee, Yi-Ju Su and Hung-Hao Chang
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Tzong-Haw Lee: School of Economics and Management, Hubei Polytechnic University, No. 16 North Road, Guilin 435003, China
Brian Lee: Program in Science, Technology and Environmental Policy, Princeton School of Policy and International Affairs, Princeton University, Princeton, NJ 08544, USA
Yi-Ju Su: Department of Economics, Shih Hsin University, No.111, Sec. 1, Mu-Cha Rd., Wenshan Dist., Taipei 11645, Taiwan

Agriculture, 2022, vol. 12, issue 2, 1-11

Abstract: Research has examined the impact of green payment programs on agricultural and economic outcomes such as agricultural productivity and farm income. However, it is unclear whether these policies are capitalized into farmland prices. This paper provides some of the first evidence on the causal impact of green payment programs on farmland prices based on evidence from Taiwan. Using administrative farmland transactions data with the ordinary least squares (OLS) method and the semi-parametric smooth coefficient model (SCM), we find that green payment programs increase farmland prices by an average of 3.9 percentage points in townships that implemented the policy. Moreover, the program’s effects on farmland prices are not homogenous, varying by farmland size. The magnitude of this effect is more pronounced on rural farmland prices and across quantiles of the farmland size distribution.

Keywords: farmland prices; green payment programs; semi-parametric smooth coefficient model; Taiwan (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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