IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v80y2019icp380-390.html
   My bibliography  Save this article

Agricultural land conversion: Impacts of economic and natural risk factors in a coastal area

Author

Listed:
  • Li, Sheng
  • Nadolnyak, Denis
  • Hartarska, Valentina

Abstract

Agricultural land has undergone extensive conversion into residential and commercial uses vulnerable to coastal hazards and other natural disasters. We use interval censored survival models while controlling for endogeneity and spatial dependence to examine the dynamics of agricultural to urban land conversion using parcel-level data from Lee County in Southwest Florida over 1988-2008. The results suggest that flood risks slow down farmland conversion while locational attributes, proxies for farming profitability, and regional economic indicators have expected signs and magnitudes. Spatial model specification indicates positive contagion externalities in land conversion. These findings may be helpful in land use policy design.

Suggested Citation

  • Li, Sheng & Nadolnyak, Denis & Hartarska, Valentina, 2019. "Agricultural land conversion: Impacts of economic and natural risk factors in a coastal area," Land Use Policy, Elsevier, vol. 80(C), pages 380-390.
  • Handle: RePEc:eee:lauspo:v:80:y:2019:i:c:p:380-390
    DOI: 10.1016/j.landusepol.2018.10.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837718306069
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.landusepol.2018.10.016?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lewis, David J. & Provencher, Bill & Butsic, Van, 2009. "The dynamic effects of open-space conservation policies on residential development density," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 239-252, May.
    2. Ruben N. Lubowski & Andrew J. Plantinga & Robert N. Stavins, 2008. "What Drives Land-Use Change in the United States? A National Analysis of Landowner Decisions," Land Economics, University of Wisconsin Press, vol. 84(4), pages 529-550.
    3. Walker, Robert & Solecki, William, 2001. "South Florida: The Reality Of Change And The Prospects For Sustainability," Ecological Economics, Elsevier, vol. 37(3), pages 333-337, June.
    4. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    5. Guan, DongJie & Li, HaiFeng & Inohae, Takuro & Su, Weici & Nagaie, Tadashi & Hokao, Kazunori, 2011. "Modeling urban land use change by the integration of cellular automaton and Markov model," Ecological Modelling, Elsevier, vol. 222(20), pages 3761-3772.
    6. Wrenn, Douglas H. & Irwin, Elena G., 2015. "Time is money: An empirical examination of the effects of regulatory delay on residential subdivision development," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 25-36.
    7. Claassen, Roger & Tegene, Abebayehu, 1999. "Agricultural Land Use Choice: A Discrete Choice Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), pages 1-11, April.
    8. Douglas J. Miller & Andrew J. Plantinga, 1999. "Modeling Land Use Decisions with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 180-194.
    9. Roger Claassen & Daniel Hellerstein & Seung Gyu Kim, 2013. "Using Mixed Logit in Land Use Models: Can Expectation-Maximization (EM) Algorithms Facilitate Estimation?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 419-425.
    10. Nancy E. Bockstael, 1996. "Modeling Economics and Ecology: The Importance of a Spatial Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1168-1180.
    11. Carmen Carrión-Flores & Elena G. Irwin, 2004. "Determinants of Residential Land-Use Conversion and Sprawl at the Rural-Urban Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 889-904.
    12. Irwin, Elena G. & Bell, Kathleen P. & Geoghegan, Jacqueline, 2003. "Modeling and Managing Urban Growth at the Rural-Urban Fringe: A Parcel-Level Model of Residential Land Use Change," Agricultural and Resource Economics Review, Cambridge University Press, vol. 32(1), pages 83-102, April.
    13. Lewis, David J. & Barham, Bradford L. & Zimmerer, Karl S., 2008. "Spatial Externalities in Agriculture: Empirical Analysis, Statistical Identification, and Policy Implications," World Development, Elsevier, vol. 36(10), pages 1813-1829, October.
    14. Enrico Pennings & Carlo Altomonte, 2006. "The Hazard Rate of Foreign Direct Investment: A Structural Estimation of a Real‐option Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(5), pages 569-593, October.
    15. Jeffrey M. Wooldridge, 2015. "Control Function Methods in Applied Econometrics," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 420-445.
    16. Solecki, William D., 2001. "SOUTH FLORIDA: THE REALITY OF CHANGE AND THE PROSPECTS FOR SUSTAINABILITY: The role of global-to-local linkages in land use/land cover change in South Florida," Ecological Economics, Elsevier, vol. 37(3), pages 339-356, June.
    17. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    18. Kathleen P. Bell & Nancy E. Bockstael, 2000. "Applying the Generalized-Moments Estimation Approach to Spatial Problems Involving Microlevel Data," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 72-82, February.
    19. Ruud Raaijmakers & Jörg Krywkow & Anne Veen, 2008. "Flood risk perceptions and spatial multi-criteria analysis: an exploratory research for hazard mitigation," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 46(3), pages 307-322, September.
    20. Hartarska, Valentina & Gonzalez-Vega, Claudio, 2006. "Evidence on the effect of credit counseling on mortgage loan default by low-income households," Journal of Housing Economics, Elsevier, vol. 15(1), pages 63-79, March.
    21. Elena G. Irwin, 2002. "Interacting agents, spatial externalities and the evolution of residential land use patterns," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 31-54, January.
    22. Michael Brady & Elena Irwin, 2011. "Accounting for Spatial Effects in Economic Models of Land Use: Recent Developments and Challenges Ahead," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 487-509, March.
    23. N. Nirupama & Slobodan Simonovic, 2007. "Increase of Flood Risk due to Urbanisation: A Canadian Example," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 40(1), pages 25-41, January.
    24. S. Balica & N. Wright & F. Meulen, 2012. "A flood vulnerability index for coastal cities and its use in assessing climate change impacts," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 64(1), pages 73-105, October.
    25. Sarkar, Sudipto, 2000. "On the investment-uncertainty relationship in a real options model," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 219-225, February.
    26. Overmars, Koen P. & Verburg, Peter H., 2006. "Multilevel modelling of land use from field to village level in the Philippines," Agricultural Systems, Elsevier, vol. 89(2-3), pages 435-456, September.
    27. Milon, J. Walter & Scrogin, David, 2006. "Latent preferences and valuation of wetland ecosystem restoration," Ecological Economics, Elsevier, vol. 56(2), pages 162-175, February.
    28. Chi‐Chung Chen & Ching‐Cheng Chang, 2005. "The impact of weather on crop yield distribution in Taiwan: some new evidence from panel data models and implications for crop insurance," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 503-511, November.
    29. Claassen, Roger & Tegene, Abebayehu, 1999. "Agricultural Land Use Choice: A Discrete Choice Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 28(1), pages 26-36, April.
    30. Bin, Okmyung & Landry, Craig E., 2013. "Changes in implicit flood risk premiums: Empirical evidence from the housing market," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 361-376.
    31. Okmyung Biny & Stephen Polasky, 2004. "Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd," Land Economics, University of Wisconsin Press, vol. 80(4).
    32. Miller, Douglas & Plantinga, Andrew J., 1999. "Modeling Land Use Decisions with Aggregate Data," Staff General Research Papers Archive 1487, Iowa State University, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Movahedi, Reza & Jawanmardi, Sina & Azadi, Hossein & Goli, Imaneh & Viira, Ants-Hannes & Witlox, Frank, 2021. "Why do farmers abandon agricultural lands? The case of Western Iran," Land Use Policy, Elsevier, vol. 108(C).
    2. Kamer-Ainur Aivaz, 2021. "The Dynamics of the Degree of Investment at the Level of Economic Agents whose Main Activity is Agriculture, Forestry and Fishing in the Context of the Concerns regarding Coastal Development," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 2-8, August.
    3. Zhaoxia Guo & Qinqin Guo & Yujie Cai & Ge Wang, 2021. "Unraveling Risk Networks of Cultivated Land Protection: An Exploratory Stakeholder-Oriented Case Study in Xiliuhe Town, Hubei Province, China," Land, MDPI, vol. 10(11), pages 1-26, November.
    4. Bukvic, A. & Mitchell, A. & Shao, Y. & Irish, J.L., 2023. "Spatiotemporal implications of flooding on relocation risk in rural and urban coastal municipalities," Land Use Policy, Elsevier, vol. 132(C).
    5. Kamer-Ainur AIVAZ, 2021. "Investigating the Impact of Subsidy Revenues on Turnover at the Level of Agriculture, Forestry and Fishing Companies in the Coastal Area of the Black Sea," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 31-38.
    6. Yan Sun & Yuanyuan Chang & Junna Liu & Xiaoping Ge & Gang-Jun Liu & Fu Chen, 2021. "Spatial Differentiation of Non-Grain Production on Cultivated Land and Its Driving Factors in Coastal China," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
    7. Anny Mulyani & Budi Mulyanto & Baba Barus & Dyah Retno Panuju & Husnain, 2023. "Potential Land Reserves for Agriculture in Indonesia: Suitability and Legal Aspect Supporting Food Sufficiency," Land, MDPI, vol. 12(5), pages 1-19, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chakir, Raja & Le Gallo, Julie, 2013. "Predicting land use allocation in France: A spatial panel data analysis," Ecological Economics, Elsevier, vol. 92(C), pages 114-125.
    2. Raja Chakir & Olivier Parent, 2009. "Determinants of land use changes: A spatial multinomial probit approach," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 327-344, June.
    3. Jean-Sauveur Ay & Raja Chakir & Julie Le Gallo, 2014. "The effects of scale, space and time on the predictive accuracy of land use models," Working Papers 2014/02, INRA, Economie Publique.
    4. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91, February.
    5. Wrenn, Douglas H. & Klaiber, Allen & Newburn, David, 2018. "Price Based Policies for Managing Residential Development and Impacts on Water Quality," 2018 Annual Meeting, August 5-7, Washington, D.C. 274029, Agricultural and Applied Economics Association.
    6. Wrenn, Douglas H. & Klaiber, H. Allen & Newburn, David A., 2019. "Price based policies for managing residential development: Impacts on water quality," Resource and Energy Economics, Elsevier, vol. 58(C).
    7. Ferris, Jeffrey & David, Newburn, 2014. "Residential Development And The Effect Of Forest Conservation Policy," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170337, Agricultural and Applied Economics Association.
    8. Sims, Katharine R.E. & Schuetz, Jenny, 2009. "Local regulation and land-use change: The effects of wetlands bylaws in Massachusetts," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 409-421, July.
    9. Carmen Carrión-Flores & Elena G. Irwin, 2017. "A fixed effects logit model of rural land conversion and zoning," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 181-208, January.
    10. Katharine R E Sims & Jenny Schuetz, 2007. "Environmental Regulation and Land Use Change: Do Local Wetlands Bylaws Slow the Conversion of Open Space to Residential Uses?," CID Working Papers 18, Center for International Development at Harvard University.
    11. Carrión-Flores, Carmen E. & Flores-Lagunes, Alfonso & Guci, Ledia, 2018. "An estimator for discrete-choice models with spatial lag dependence using large samples, with an application to land-use conversions," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 77-93.
    12. Chakir, Raja & Lungarska, Anna, 2015. "Agricultural land rents in land use models: a spatial econometric analysis," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212641, European Association of Agricultural Economists.
    13. Maples, Chellie H. & Hagerman, Amy D. & Lambert, Dayton M., 2022. "Ex-ante effects of the 2018 Agricultural Improvement Act’s grassland initiative," Land Use Policy, Elsevier, vol. 116(C).
    14. Lynch, Lori & Geoghegan, Jacqueline, 2011. "FOREWORD: The Economics of Land Use Change: Advancing the Frontiers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(3), pages 1-6, December.
    15. Wrenn, Douglas H. & Klaiber, Allen & Newburn, David, 2017. "Price-Based Policies for Managing Residential Land Development: Impacts on Water Quality," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258578, Agricultural and Applied Economics Association.
    16. Claassen, Roger & Carriazo, Fernando & Cooper, Joseph C. & Hellerstein, Daniel & Ueda, Kohei, 2011. "Grassland to Cropland Conversion in the Northern Plains: The Role of Crop Insurance, Commodity, and Disaster Programs," Economic Research Report 262239, United States Department of Agriculture, Economic Research Service.
    17. Kathleen P. Bell & Timothy J. Dalton, 2007. "Spatial Economic Analysis in Data‐Rich Environments," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 487-501, September.
    18. Lewis, David J., 2010. "An economic framework for forecasting land-use and ecosystem change," Resource and Energy Economics, Elsevier, vol. 32(2), pages 98-116, April.
    19. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2003. "Determinants of Land-Use Change In the United States 1982-1997," Discussion Papers 10714, Resources for the Future.
    20. Polyakov, Maksym & Zhang, Daowei, 2008. "Population Growth and Land Use Dynamics along Urban–Rural Gradient," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-18, August.

    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:eee:lauspo:v:80:y:2019:i:c:p:380-390. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    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.