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The Role of Environmental and Land Transaction Regulations on Agricultural Land Price: The example of Brittany

Laure Latruffe (), Jean Joseph Minvie and Julien Salanié ()

No 164, Factor Markets Working Papers from Centre for European Policy Studies

Abstract: Using data from individual transactions for the period 1994-2010 in the French NUTS2 region Brittany, the authors investigated how environmental regulations and transaction land regulations influence the price of sold plots. Regressions on three sub-samples of buyers were performed in order to assess whether different buyers have different attitudes or plans regarding the farmland purchased: a sub-sample including only farmer-buyers, a sub-sample including non-farmer individual buyers, and a sub-sample including non-farmer non-individual buyers. Estimations were performed ignoring and accounting for spatial interactions (model SARAR). Results indicate that the price of land decreases when buyers are farmers, that the nitrate surplus area zoning increases the price of land, even more so for farmer-buyers. Regarding land transaction regulations, there is a negative effect, on land price, of the purchaser being the current tenant or being the land regulating public body SAFER. Estimating the model on different sub-samples depending on the buyers’ type shed light on the factors that are more important for each buyer.

Pages: 19 pages
Date: 2013-06
New Economics Papers: this item is included in nep-agr and nep-env
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