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Valuation of environmental impacts of the Rural Development Program - A hedonic model with application of GIS

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  • Liljenstolpe, Carolina
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    Abstract

    The payments within the Rural Development Programme 2007- 2013 seek to improve the environment and contribute to rural development and economic growth. These policy measures may therefore have visual effects on the rural landscape. To achieve a measure of willingness to pay for these effects, a hedonic pricing approach is applied. The prices for staying at holdings in the “Staying on farms” registry are used to quantify the valuation of these visual effects. The results of this study indicate that there is a relationship between the price of rental objects and spatial variables constructed in GIS. Riparian strips and animals at the farm are positively valued. Cultivated land, grazing and meadow lands close to the settings are negatively valued. Hence, this study indicate that there is a positive willingness to pay for payments addressing user values in a diversified landscape and a negative willingness to pay for actions leading to a more monotonous landscape, such as payments to extensive grazing systems.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 122nd Seminar, February 17-18, 2011, Ancona, Italy with number 98881.

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    Date of creation: 17 Feb 2011
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    Handle: RePEc:ags:eaa122:98881

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    Keywords: Hedonic Valuation; Rural landscape; Rural Development Program; GIS; Agricultural and Food Policy; Community/Rural/Urban Development; Q150; Q180; Q510;

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    1. Tyrvainen, Liisa & Miettinen, Antti, 2000. "Property Prices and Urban Forest Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 205-223, March.
    2. Jean Cavailhès & Thierry Brossard & Jean-Christophe Foltête & Mohamed Hilal & Daniel Joly & François-Pierre Tourneux & Céline Tritz & Pierre Wavresky, 2009. "GIS-Based Hedonic Pricing of Landscape," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(4), pages 571-590, December.
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