[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/midagr/59321.html
   My bibliography  Save this paper

Hedonic Valuation of Ecosystem Services Using Agricultural Land Prices

Author

Listed:
  • Ma, Shan
Abstract
Agriculture, an ecosystem transformed by humans for the purpose of supplying food, fiber and biofuel, can provide people a host of benefits, or ecosystem services (ES). While markets exist for farm products, many of today’s central agro-environmental policy concerns are related to ES that lack complete markets, such as regulating ES and recreational, aesthetic and cultural ES. Valuation of non-marketed ES linked to agriculture is needed to improve their utilization and efficient provision. Some ES that facilitate agricultural production or provide natural amenities can be perceived by people through various natural resources and landscapes on farmlands and surrounding areas. One indirect way to measure the value of ES is via what people pay for the lands that provide them. In this hedonic study, the agricultural land price is used to reveal marginal values of those resources and landscapes, and to infer the degree of ES capitalization into land prices in southwestern Michigan. Results suggest that recreational and aesthetic services are largely capitalized through lakes, rivers, wetlands, woodlands and conservation lands. Some production-supporting regulating services may have also been partially capitalized. Certain ES from the land parcel and its surroundings are unlikely to be capitalized due to unawareness or little realized value (e.g., beneficial insects and soil microbial communities), as well as missing incentive for large scale public goods (e.g., carbon sequestration and biodiversity). In comparing sales prices and appraisal values, we find that sales prices reflect amenity benefits better than appraisal values, which tend to emphasize agricultural production potential and built capital values.

Suggested Citation

  • Ma, Shan, 2010. "Hedonic Valuation of Ecosystem Services Using Agricultural Land Prices," Graduate Research Master's Degree Plan B Papers 59321, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midagr:59321
    DOI: 10.22004/ag.econ.59321
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/59321/files/MaPlanB2010%20.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.59321?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shan Ma & Scott M. Swinton, 2012. "Hedonic Valuation of Farmland Using Sale Prices versus Appraised Values," Land Economics, University of Wisconsin Press, vol. 88(1), pages 1-15.
    2. Yoo, James & Perrings, Charles & Kinzig, Ann & Abbott, Joshua K. & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J., 2012. "The Value of Water Rights in Agricultural Properties in the Phoenix Active Management Area," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124095, Agricultural and Applied Economics Association.
    3. Ma, Shan & Swinton, Scott M., 2011. "Valuation of ecosystem services from rural landscapes using agricultural land prices," Ecological Economics, Elsevier, vol. 70(9), pages 1649-1659, July.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:midagr:59321. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/damsuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.