Landowner response to policies regulating land improvements: lease or search for other options?
AbstractLand improvements with long pay-back periods are often delayed on leased agricultural land, resulting in social costs through land degradation, decreased land productivity and environmental problems. An important question is thus how landowners would respond to regulations and mandates concerning land improvements. Based on a landowner survey, we analyse landowner choices under certain land improvement regulations, using the currently dominant choice of leasing land for agricultural use as the benchmark. The results indicated that land leasing will continue to increase in the future, but if the landowner mandate to co-finance costly land improvements is increased, landowners are predicted to respond significantly to these mandates and search for other land management options. Three heterogeneous landowner groups were identified based on their land use choices. Current leasers and amenity owners, in particular, were sensitive to land improvement mandates, and would avoid compulsory investment expenses by selling or afforesting their land.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114770.
Date of creation: 2011
Date of revision:
contingent behaviour; latent class model; landlord; land use; heterogeneity; Land Economics/Use; Q15; Q24; Q28;
Find related papers by 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
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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