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Property Tax Policy and Land-Use Change

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  • Maksym Polyakov
  • Daowei Zhang

Abstract

In this study, we analyze the effect of property taxes on changes between agricultural, forestry, Conservation Reserve Program, and developed land uses in Louisiana. We estimate a random parameters logit model of land-use conversion from the National Resources Inventory plot data. Our results indicate that land-use changes are inelastic with respect to property taxes. Simulation shows that current use valuation policy, while slowing down development of rural lands, also affects changes between rural land uses.

Suggested Citation

  • Maksym Polyakov & Daowei Zhang, 2008. "Property Tax Policy and Land-Use Change," Land Economics, University of Wisconsin Press, vol. 84(3), pages 396-408.
    • Handle: RePEc:uwp:landec:v:84:y:2008:i:3:p:396-408
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    Cited by:

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    2. Teodor Skotarczak & Malgorzata Blaszke, 2021. "Impact of Land Use Change on the Value of Tourist Property," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 497-508.
    3. Olubode-Awosola, Femi, 2009. "Agricultural land tax and farm-level resource use and output supply response," 2009 Conference, August 16-22, 2009, Beijing, China 51664, International Association of Agricultural Economists.
    4. Kilgore, Michael A. & Ellefson, Paul V. & Funk, Travis J. & Frey, Gregory E., 2018. "Private forest owners and property tax incentive programs in the United States: A national review and analysis of ecosystem services promoted, landowner participation, forestland area enrolled, and ma," Forest Policy and Economics, Elsevier, vol. 97(C), pages 33-40.
    5. Polyakov, Maksym & Pannell, David J. & Pandit, Ram & Tapsuwan, Sorada & Park, Geoff, 2013. "Valuing Environmental Assets on Rural Lifestyle Properties," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(1), pages 159-175, April.
    6. Daniel P. Bigelow & Todd Kuethe, 2020. "A Tale of Two Borders: Use‐Value Assessment, Land Development, and Irrigation Investment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1404-1424, October.
    7. Daigneault, Adam J. & Sohngen, Brent L. & Sedjo, Roger, 2020. "Carbon and market effects of U.S. forest taxation policy," Ecological Economics, Elsevier, vol. 178(C).
    8. Oladipo S. Obembe & Nathan P. Hendricks, 2022. "Marginal cost of carbon sequestration through forest afforestation of agricultural land in the southeastern United States," Agricultural Economics, International Association of Agricultural Economists, vol. 53(S1), pages 59-73, November.
    9. Ackerschott, Adriana & Kohlhase, Esther & Vollmer, Anita & Hörisch, Jacob & von Wehrden, Henrik, 2023. "Steering of land use in the context of sustainable development: A systematic review of economic instruments," Land Use Policy, Elsevier, vol. 129(C).
    10. Klára Báliková & Natacha Jesus-Silva & Noémia Bessa Vilela & Michaela Korená Hillayová & Jaroslav Šálka, 2023. "The forest land tax systems in Slovakia and Portugal," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 69(10), pages 427-437.
    11. Klára Báliková & Natacha Jesus-Silva & Noémia Bessa Vilela & Michaela Korená Hillayová & Jaroslav Šálka, . "The forest land tax systems in Slovakia and Portugal," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 0.
    12. Frey, Gregory E. & Meier, Justin T. & Kilgore, Michael A. & Snyder, Stephanie A. & Blinn, Charles R., 2019. "Factors associated with family forest landowner enrollment in state preferential forest property tax programs in the United States," Land Use Policy, Elsevier, vol. 89(C).
    13. Taranu, Victoria & Verbeeck, Griet, 2022. "Property tax as a policy against urban sprawl," Land Use Policy, Elsevier, vol. 122(C).
    14. Li, Man & Wu, JunJie & Deng, Xiangzheng, 2009. "Empirical Analysis of Land-use Change and Soil Carbon Sequestration Cost in China," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49568, Agricultural and Applied Economics Association.
    15. Li, Yanshu & Izlar, Robert L., 2021. "The Forest Land Protection Act program (FLPA) and conserving forestland in Georgia," Forest Policy and Economics, Elsevier, vol. 124(C).

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    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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