Impacts of Agri-Environmental Policies on Land Allocation and Land Prices

Herve Guyomard, Jussi Lankoski and Markku Ollikainen

No 25310, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

Abstract: We develop a Ricardian framework with heterogeneous land quality to analyse the effects of agricultural and agri-environmental support policies on land allocation decisions and land prices. Four agri-environmental policy instruments are considered: a uniform area payment, a quality-dependent area payment, a mandatory buffer strip policy and a voluntary buffer strip payment. We also analyse how general tax and monetary policies may affect agricultural land prices. The theoretical framework is illustrated by an empirical model applied to Finnish agriculture. The empirical model shows that macroeconomic factors, such as general tax and monetary policies, may exert a greater impact on land prices than some minor fine-tuning in agrienvironmental policies.

Keywords: Environmental Economics and Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 16
Date: 2006
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25310

DOI: 10.22004/ag.econ.25310

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