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Projected impacts of salinity on dryland property values in South West Australia

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  • Ward, Michael B.
  • Dent, Jared

Abstract

The goal of this analysis is to predict the impacts of salinity on property values in the unirrigated, predominately cropping land in the south-west agricultural region of Western Australia. The method applied is statistical analysis of the relationship between salinity and property values in data from the recent past. Estimates suggest that if we can avoid salinisation of salt free cropping land holding other factors constant, we can avoid a reduction in land values of anywhere between 30% and 95%. In terms of dollar values and relative to the average land value per hectare in this study of approximately $1500, that amounts to savings of between $450 and $1425 per hectare.

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Paper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 107742.

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Date of creation: Dec 2010
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Handle: RePEc:ags:eerhrr:107742

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Keywords: Environmental Economics and Policy;

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  1. Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2006. "The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 113-125, February.
  2. Pannell, David J. & Ewing, Michael A., 2006. "Managing secondary dryland salinity: Options and challenges," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 41-56, February.
  3. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
  4. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-71, September.
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