Hostname: page-component-848d4c4894-4rdrl Total loading time: 0 Render date: 2024-07-03T10:42:01.915Z Has data issue: false hasContentIssue false
  • English
  • Français

Valuing Environmental Assets on Rural Lifestyle Properties

Published online by Cambridge University Press:  15 September 2016

Maksym Polyakov ,
David J. Pannell ,
Ram Pandit ,
Sorada Tapsuwan  and
Geoff Park
Maksym Polyakov*
Affiliation:
Centre for Environmental Economics and Policy, School of Agricultural and Resource Economics, University of Western Australia
David J. Pannell
Affiliation:
Centre for Environmental Economics and Policy, School of Agricultural and Resource Economics, University of Western Australia
Ram Pandit
Affiliation:
School of Agricultural and Resource Economics at the University of Western Australia
Sorada Tapsuwan
Affiliation:
CSIRO Ecosystem Science and an adjunct lecturer in the School of Agricultural and Resource Economics at the University of Western Australia
Geoff Park
Affiliation:
North Central Catchment Management Authority in Victoria, Australia
*
Corresponding Author: Maksym Polyakov ▪ Centre for Environmental Economics and Policy ▪ School of Agricultural and Resource Economics ▪ University of Western Australia ▪ Crawley, WA, 6009 ▪ Australia ▪ Phone +618.6488.5509 ▪ Email maksym.polyakov@uwa.edu.au.
Get access

Abstract

Lifestyle landowners value land for its amenities and ecological characteristics and could play an important role in managing and conserving native vegetation in multifunctional rural landscapes. We quantify values of ecosystem services captured by owners of rural lifestyle properties in Victoria, Australia, using a spatial hedonic property price model. The value of ecosystem services provided by native vegetation is maximized when that vegetation occupies about 40 percent of the area of a lifestyle property. Since the current median proportion of native vegetation is 15 percent, most lifestyle landowners could benefit from increasing the area of native vegetation on their properties.

Keywords

ecosystem serviceslifestyle landownersnative vegetationspatial hedonic model
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 42 , Issue 1 , April 2013 , pp. 159 - 175
Copyright
Copyright © 2013 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anselin, L. 1988. Spatial Econometrics: Methods and Models. Dordrecht, The Netherlands: Kluwer Academic Publishers.CrossRefGoogle Scholar
Argent, N., Smailes, P., and Griffin, T. 2007. “The Amenity Complex: Towards a Framework for Analysing and Predicting the Emergence of a Multifunctional Countryside in Australia.” Geographical Research 45(3): 217–232.CrossRefGoogle Scholar
Barr, N., Karunaratne, K., and Wilkinson, R. 2005. Australia's Farmers: Past, Present, and Future. Land and Water Australia, Canberra, Australia.Google Scholar
Bastian, C.T., McLeod, D.M., Germino, M.J., Reiners, W.A., and Blasko, B.J. 2002. “Environmental Amenities and Agricultural Land Values: A Hedonic Model Using Geographic Information Systems Data.” Ecological Economics 40(3): 337–349.CrossRefGoogle Scholar
Borchers, A.M., and Duke, J.M. 2012. “Capitalization and Proximity to Agricultural and Natural Lands: Evidence from Delaware.” Journal of Environmental Management 99(May): 110–117.CrossRefGoogle ScholarPubMed
Breneman, V.E. 1997. Population Accessibility. Analysis of U.S. Bureau of Census 1990 Block Group Level Population Data. Economic Research Service, U.S. Department of Agriculture, Washington, D.C. Google Scholar
Chicoine, D.L. 1981. “Farmland Values at the Urban Fringe: An Analysis of Sale Prices.” Land Economics 57(3): 353–362.CrossRefGoogle Scholar
Chipeniuk, R. 2004. “Planning for Amenity Migration in Canada: Current Capacities of Interior British Columbian Mountain Communities.” Mountain Research and Development 24(4): 327–335.CrossRefGoogle Scholar
Curtis, A. 2008. Understanding the Social Drivers for Natural Resource Management in the Wimmera Region. Institute for Land, Water, and Society, Albury, New South Wales, Australia.Google Scholar
Donovan, G.H., and Butry, D.T. 2010. “Trees in the City: Valuing Street Trees in Portland, Oregon.” Landscape and Urban Planning 94(2): 77–83.CrossRefGoogle Scholar
Donovan, G.H., Champ, P.A., and Butry, D.T. 2007. “Wildfire Risk and Housing Prices: A Case Study from Colorado Springs.” Land Economics 83(2): 217–233.CrossRefGoogle Scholar
Fraser, R., and Spencer, G. 1998. “The Value of an Ocean View: An Example of Hedonic Property Amenity Valuation.” Australian Geographical Studies 36(1): 94–98.CrossRefGoogle Scholar
Geoghegan, J., Wainger, L.A., and Bockstael, N.E. 1997. “Spatial Landscape Indices in a Hedonic Framework: An Ecological Economics Analysis Using GIS.” Ecological Economics 23(3): 251–264.CrossRefGoogle Scholar
Gill, N., Klepeis, P., and Chisholm, L. 2010. “Stewardship among Lifestyle Oriented Rural Landowners.” Journal of Environmental Planning and Management 53(3): 317–334.CrossRefGoogle Scholar
Gurran, N. 2008. “The Turning Tide: Amenity Migration in Coastal Australia.” International Planning Studies 13(4): 391–414.Google Scholar
Irwin, E.G. 2002. “The Effects of Open Space on Residential Property Values.” Land Economics 78(4): 465–480.CrossRefGoogle Scholar
Irwin, E.G., Isserman, A.M., Kilkenny, M., and Partridge, M.D. 2010. “A Century of Research on Rural Development and Regional Issues.” American Journal of Agricultural Economics 92(2): 522–553.Google Scholar
Jarvis, A., Reuter, H.I., Nelson, A., and Guevara, E. 2008. “Hole-filled SRTM for the Globe, Version 4.” CGIAR-CSI SRTM 90m database. Available at www.cgiar-csi.org/data/srtm-90m-digital-elevation-database-v4-1 (accessed June 24, 2012).Google Scholar
Kelejian, H.H., and Prucha, I.R. 2010. “Specification and Estimation of Spatial Autoregressive Models with Autoregressive and Heteroskedastic Disturbances.” Journal of Econometrics 157(1): 53–67.Google Scholar
Knight, A.T., Cowling, R.M., Difford, M., and Campbell, B.M. 2010. “Mapping Human and Social Dimensions of Conservation Opportunity for the Scheduling of Conservation Action on Private Land.” Conservation Biology 24(5): 1348–1358.Google Scholar
Kuminoff, N.V. 2009. “Using a Bundled Amenity Model to Estimate the Value of Cropland Open Space and Determine an Optimal Buffer Zone.” Journal of Agricultural and Resource Economics 34(1): 68–90.Google Scholar
Kyle, G., and Duncan, D.H. 2012. “Arresting the Rate of Land Clearing: Change in Woody Native Vegetation Cover in a Changing Agricultural Landscape.” Landscape and Urban Planning 106(2): 165–173.CrossRefGoogle Scholar
Livanis, G., Moss, C.B., Breneman, V.E., and Nehring, R.F. 2006. “Urban Sprawl and Farmland Prices.” American Journal of Agricultural Economics 88(4): 915–929.CrossRefGoogle Scholar
Luck, G., Black, R., and Race, D. (eds.). 2011. Demographic Change in Australia's Rural Landscapes: Implications for Society and the Environment. Collingwood, Victoria, Australia: CSIRO Publishing/Springer.Google Scholar
Ma, S., and Swinton, S.M. 2011. “Valuation of Ecosystem Services from Rural Landscapes Using Agricultural Land Prices.” Ecological Economics 70(9): 1649–1659.CrossRefGoogle Scholar
Maddison, D. 2009. “A Spatio-temporal Model of Farmland Values.” Journal of Agricultural Economics 60(1): 171–189.CrossRefGoogle Scholar
Mahmoudi, P., MacDonald, D.H., Crossman, N.D., Summers, D.M., and van der Hoek, J. 2013. “Space Matters: The Importance of Amenity in Planning Metropolitan Growth.” Australian Journal of Agricultural and Resource Economics 57(1): 38–59.CrossRefGoogle Scholar
Majumdar, I., Teeter, L., and Butler, B. 2008. “Characterizing Family Forest Owners: A Cluster Analysis Approach.” Forest Science 54(2): 176–184.Google Scholar
McGranahan, D.A. 2008. “Landscape Influence on Recent Rural Migration in the U.S.” Landscape and Urban Planning 85(3/4): 228–240.CrossRefGoogle Scholar
Mendham, E., and Curtis, A. 2010. “Taking over the Reins: Trends and Impacts of Changes in Rural Property Ownership.” Society and Natural Resources 23(7): 653–668.CrossRefGoogle Scholar
Millennium Ecosystem Assessment. 2005. Ecosystems and Human Well-being: Synthesis. Washington, DC: Island Press.Google Scholar
Pandit, R., Polyakov, M., Tapsuwan, S., and Moran, T. 2013. “The Effect of Street Trees on Property Value in Perth, Western Australia.” Landscape and Urban Planning 110: 134–142.Google Scholar
Pannell, D.J. 2008. “Public Benefits, Private Benefits, and Policy Mechanism Choice for Land-use Change for Environmental Benefits.” Land Economics 84(2): 225–240.CrossRefGoogle Scholar
Pannell, D.J., Marshall, G.R., Barr, N., Curtis, A., Vanclay, F., and Wilkinson, R. 2006. “Understanding and Promoting Adoption of Conservation Practices by Rural Landholders.” Australian Journal of Experimental Agriculture 46(11): 1407–1424.CrossRefGoogle Scholar
Pannell, D.J., and Wilkinson, R. 2009. “Policy Mechanism Choice for Environmental Management by Non-commercial ‘Lifestyle’ Rural Landholders.” Ecological Economics 68(10): 2679–2687.CrossRefGoogle Scholar
Piras, G. 2010. “sphet: Spatial Models with Heteroskedastic Innovations in R.” Journal of Statistical Software 35(1): 1–21.CrossRefGoogle Scholar
Polyakov, M., and Zhang, D.W. 2008a. “Population Growth and Land Use Dynamics along Urban-Rural Gradient.” Journal of Agricultural and Applied Economics 40(2): 649–666.Google Scholar
Polyakov, M., and Zhang, D.W. 2008b. “Property Tax Policy and Land-use Change.” Land Economics 84(3): 396–408.Google Scholar
Race, D., Sample, R., Curtis, A., and McDonald, S. 2010. Management of Native Vegetation on Private Land: Perspectives of Landholders and NRM Program Managers in Northern Victoria. Landscape Logic, University of Tasmania, Australia. Available at www.landscapelogicproducts.org.au/site/products (accessed February 2013).Google Scholar
Raymond, C.M., and Brown, G. 2011. “Assessing Conservation Opportunity on Private Land: Socio-economic, Behavioral, and Spatial Dimensions.” Journal of Environmental Management 92(10): 2513–2523.CrossRefGoogle ScholarPubMed
Rees, D.B., Rowan, J., Ransome, S.W., and Russell, L.D. 2000. Land Systems of Victoria. Centre for Land Protection Research Technical Report 56, Department of Natural Resources and Environment, Epsom, Victoria, Australia.Google Scholar
Rosen, S. 1974. “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition.” Journal of Political Economy 82(1): 34–55.CrossRefGoogle Scholar
Seabrook, L., McAlpine, C., and Fensham, R. 2008. “What Influences Farmers to Keep Trees? A Case Study from the Brigalow Belt, Queensland, Australia.” Landscape and Urban Planning 84(3/4): 266–281.CrossRefGoogle Scholar
Sengupta, S., and Osgood, D.E. 2003. “The Value of Remoteness: A Hedonic Estimation of Ranchette Prices.” Ecological Economics 44(1): 91–103.CrossRefGoogle Scholar
Sorice, M.G., Kreuter, U.P., Wilcox, B.P., and Fox, W.E. 2012. “Classifying Land-ownership Motivations in Central Texas, USA: A First Step in Understanding Drivers of Large-scale Land Cover Change.” Journal of Arid Environments 80: 56–64.CrossRefGoogle Scholar
Tapsuwan, S., Ingram, G., Burton, M., and Brennan, D. 2009. “Capitalized Amenity Value of Urban Wetlands: A Hedonic Property Price Approach to Urban Wetlands in Perth, Western Australia.” Australian Journal of Agricultural and Resource Economics 53(4): 527–545.CrossRefGoogle Scholar
Tapsuwan, S., MacDonald, D.H., King, D., and Poudyal, N. 2012. “A Combined Site Proximity and Recreation Index Approach to Value Natural Amenities: An Example from a Natural Resource Management Region of Murray-Darling Basin.” Journal of Environmental Management 94(1): 69–77.CrossRefGoogle ScholarPubMed
Taylor, L.O. 2003. “The Hedonic Method.” In Champ, P.A., Boyle, K.J., and Brown, T.C., eds., A Primer on Nonmarket Valuation. Boston, MA: Kluwer Academic Publishers.Google Scholar
Torell, L.A., Rimbey, N.R., Ramírez, O. A., and McCollum, D.W. 2005. “Income Earning Potential versus Consumptive Amenities in Determining Ranchland Values.” Journal of Agricultural and Resource Economics 30(3): 537–560.Google Scholar
Tu, Y., Sun, H., and Yu, S.M. 2007. “Spatial Autocorrelations and Urban Housing Market Segmentation.” Journal of Real Estate Finance and Economics 34(3): 385–406.CrossRefGoogle Scholar
White, E.M., and Leefers, L.A. 2007. “Influence of Natural Amenities on Residential Property Values in a Rural Setting.” Society and Natural Resources 20(7): 659–667.CrossRefGoogle Scholar
Williams, K.J.H., and Cary, J. 2002. “Landscape Preferences, Ecological Quality, and Biodiversity Protection.” Environment and Behavior 34(2): 257–274.Google Scholar