Farmres' Perceived Cost of Land Use restrictions: A Simulated Purchasing Decision Using Dscrete Choice Experiments

Sebastien Lizin, Steven Van Passel and Eloi Schreurs

No 212054, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: This paper reports on the findings from discrete choice experiments designed to estimate farmers’ perceived costs of land use restrictions, i.e. crop restrictions, additional fertilizing restrictions, and usage restrictions, as opposed to having no such restrictions. To this end, hypothetical land purchasing decisions were simulated based on the information about productivity, lot size, distance to other land, driving time to home, land use restrictions, and price. Farmers from the Campine area (Belgium) were invited to participate in the survey as the agricultural land in this region still faces the effects of historical heavy metal contamination resulting in crop restrictions. For identical pieces of land, we estimate the perceived cost, calculated as a change in the consumer surplus due to having a land use restriction, to be about 46,000 €/ha for the crop restriction, 50,000 €/ha for the usage restriction, and 70,000 €/ha for the fertilizing restrictions.

Keywords: Agricultural and Food Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 37
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-pke
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212054

DOI: 10.22004/ag.econ.212054

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