Spatial rationalization of location value and use conversion cost in multiobjective land use optimization: Coupling hedonics pricing model and genetic algorithm

Ashenafi Mehari and Paolo Vincenzo Genovese

Land Use Policy, 2025, vol. 157, issue C

Abstract: This study critiques global-based land use optimization methods and introduces a spatially rationalized framework to address their limitations. Global optimization often oversimplifies land value changes and use conversion costs by relying on averaged data, leading to unrealistic projections and inefficiencies. By contrast, the proposed spatial rationalization optimization framework integrates NSGA-II with a Ricardian-hedonic valuation model, providing a more accurate representation of local dynamics. Results of a case study, Mek’ele City in Ethiopia, illustrates that the global optimization outputs false signals on location value and use conversion cost whose policy implications are serious. The global optimization version false signals the land use conversion cost is 390.9 per square meter while the spatial rationalization version indicates the net change is a gain of 11.8. The spatial rationalization also maintains more areas with their original use indicating lower fiscal effect of implementing the optimal plan. The spatial allocation of uses aligns more closely with real-world conditions and enhances the effectiveness of land valuation strategies, such as land value capture. The findings highlight the need for spatially informed optimization in land use planning, advocating for policies that reflect true value changes and improve implementation accuracy. The study’s insights emphasize the importance of moving beyond global optimization frameworks.

Keywords: Land use optimization; Spatial rationalization; Global optimization; Location value; Use conversion cost; Coupling hedonics and genetic algorithm (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264837725002285
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:lauspo:v:157:y:2025:i:c:s0264837725002285

DOI: 10.1016/j.landusepol.2025.107694

Access Statistics for this article

Land Use Policy is currently edited by Jaap Zevenbergen

More articles in Land Use Policy from Elsevier
Bibliographic data for series maintained by Joice Jiang ().