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Land conversion and market equilibrium: insights from a simulated landscape

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  • Richard Iovanna
  • Colin Vance

Abstract

We specify a system of equations that fully reflects the supply and demand sides of the market for agricultural open space at equilibrium. Although simple, the system is exceedingly flexible and allows for household and parcel heterogeneity. We derive an empirical model directly from the structural equations and contrast this using a simulated landscape with the econometric specification most often found in the literature. We then show how the model can be used to project land-use change into the future and for policy simulation. Finally, we use the model to examine the impact of common land conservation policies in Europe. Copyright Springer-Verlag 2013

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  • Richard Iovanna & Colin Vance, 2013. "Land conversion and market equilibrium: insights from a simulated landscape," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(1), pages 169-184, February.
    • Handle: RePEc:spr:anresc:v:50:y:2013:i:1:p:169-184
    DOI: 10.1007/s00168-011-0486-9
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    More about this item

    Keywords

    R15; Q24;

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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