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Assessing the Relationship Between Crop Choice and Land Use Change Using A Markov Model

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  • Hua, Wei
  • Sohngen, Brent
  • Hite, Diane

Abstract

There is widespread concern among environmental and agricultural interest that land use change will affect the future productivity of the agricultural industry by utilizing highly productive land for development. This paper considers the links between land use change and crop choices in order to analyze whether land use change is influencing crop choices. In order to account for potential endogeneity between crop choices and land use choices, we develop a Markov Model that allows us to capture potential endogeneity between these two choices (land use and crop choice). The Markov model is developed for the 12 Midwestern U.S. States using USDA NRI data at the county level.

Suggested Citation

  • Hua, Wei & Sohngen, Brent & Hite, Diane, 2005. "Assessing the Relationship Between Crop Choice and Land Use Change Using A Markov Model," 2005 Annual meeting, July 24-27, Providence, RI 19257, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19257
    DOI: 10.22004/ag.econ.19257
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    References listed on IDEAS

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    1. Ethridge, Don E. & Roy, Sujit K. & Myers, David W., 1985. "A Markov Chain Analysis of Structural Changes in the Texas High Plains Cotton Ginning Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 11-20, December.
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    4. Choi, Suk-Won & Sohngen, Brent & Alig, Ralph J., 2001. "Land-Use Change And Carbon Sequestration In The Forests Of Ohio, Indiana, And Illinois: Sensitivity To Population And Model Choice," 2001 Annual meeting, August 5-8, Chicago, IL 20564, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Hsieh, Wen-Hua & Irwin, Elena G. & Forster, D. Lynn, 2000. "Spatial Dependence Among County-Level Land Use Changes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21852, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Disney, W. Terry & Duffy, Patricia A. & Hardy, William E., 1988. "A Markov Chain Analysis of Pork Farm Size Distributions in the South," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 20(2), pages 57-64, December.
    7. Ethridge, Don E. & Roy, Sujit K. & Myers, David W., 1985. "A Markov Chain Analysis Of Structural Changes In The Texas High Plains Cotton Ginning Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-10, December.
    8. Peter F. Orazem & John A. Miranowski, 1994. "A Dynamic Model of Acreage Allocation with General and Crop-Specific Soil Capital," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 385-395.
    9. McMillen, Daniel P. & McDonald, John F., 1991. "A Markov Chain model of zoning change," Journal of Urban Economics, Elsevier, vol. 30(2), pages 257-270, September.
    10. MacRae, Elizabeth Chase, 1977. "Estimation of Time-Varying Markov Processes with Aggregate Data," Econometrica, Econometric Society, vol. 45(1), pages 183-198, January.
    11. 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.
    12. Bhattarai, Gandhi Raj & Hatch, L. Upton & Zhang, Daowei, 2004. "Socioeconomic Influences On Land Use Choice At Watershed Level: A Multinomial Logit Analysis Of Land Use Distribution In West Georgia," 2004 Annual meeting, August 1-4, Denver, CO 20183, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Disney, W. Terry & Duffy, Patricia A. & Hardy, William E., Jr., 1988. "A Markov Chain Analysis Of Pork Farm Size Distributions In The South," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(2), pages 1-8, December.
    14. Haab, T. C., 2003. "Temporal correlation in recreation demand models with limited data," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 195-212, March.
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    Cited by:

    1. Wallander, Steven & Bowman, Maria S. & Claassen, Roger L., 2017. "Temporary Subsidies and Persistent Behavior: Evidence from Conservation Tillage," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259148, Agricultural and Applied Economics Association.

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