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Valuing environmental assets on rural lifestyle properties

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  • Polyakov, Maksym
  • Pannell, David J.
  • Pandit, Ram
  • Tapsuwan, Sorada
  • Park, Geoff

Abstract

Changing land-ownership patterns transform many rural landscapes from agricultural to multifunctional, which may have significant implications for land management and conservation policy. This paper presents a hedonic pricing model that quantifies the value of the remnant native vegetation captured by owners of rural lifestyle properties in rural Victoria, Australia. Remnant native vegetation has a positive but diminishing marginal implicit price. The value of lifestyle properties is maximized when their proportion of area occupied by native vegetation is about 40%. Most lifestyle landowners would receive benefits from increasing the area of native vegetation on their land. Findings from this study will be used to support decisions about ecological restoration on private lands in fragmented agriculture-dominated landscapes.

Suggested Citation

  • Polyakov, Maksym & Pannell, David J. & Pandit, Ram & Tapsuwan, Sorada & Park, Geoff, 2012. "Valuing environmental assets on rural lifestyle properties," Working Papers 126941, University of Western Australia, School of Agricultural and Resource Economics.
    • Handle: RePEc:ags:uwauwp:126941
    DOI: 10.22004/ag.econ.126941
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    Cited by:

    1. Ram Pandit & Maksym Polyakov & Rohan Sadler, 2014. "Valuing public and private urban tree canopy cover," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 453-470, July.
    2. Roberto Evangelio & Simon Hone & Moses Lee & David Prentice, 2019. "What Makes a Locality Attractive? Estimates of the Amenity Value of Parks for Victoria," Economic Papers, The Economic Society of Australia, vol. 38(3), pages 182-192, September.
    3. Kalinin, Alexey V. & Sims, Katharine R.E. & Meyer, Spencer R. & Thompson, Jonathan R., 2023. "Does land conservation raise property taxes? Evidence from New England cities and towns," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    4. Bauer, Dana Marie & Johnston, Robert J., 2013. "Foreword: The Economics of Rural and Agricultural Ecosystem Services: Purism versus Practicality," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(1), pages 1-13, April.
    5. Zhang, Fan & Polyakov, Maksym & Fogarty, James & Pannell, David, 2016. "The Capitalized Value of Rainwater Tanks in the Property Market of Perth, Australia," Working Papers 246968, University of Western Australia, School of Agricultural and Resource Economics.
    6. Alex M. Lechner & Bernadetta Devi & Ashlee Schleger & Greg Brown & Phill McKenna & Saleem H. Ali & Shanty Rachmat & Muhammad Syukril & Paul Rogers, 2017. "A Socio-Ecological Approach to GIS Least-Cost Modelling for Regional Mining Infrastructure Planning: A Case Study from South-East Sulawesi, Indonesia," Resources, MDPI, vol. 6(1), pages 1-14, January.
    7. Polyakov, Maksym & Pannell, David J., 2014. "Accounting for private benefits in ecological restoration planning," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169823, Agricultural and Applied Economics Association.
    8. Diane Pearson, 2021. "Lifestyle Properties, Ecosystem Services, and Biodiversity Protection in Peri-Urban Aotearoa–New Zealand: A Case Study from Peri-Urban Palmerston North," Land, MDPI, vol. 10(12), pages 1-21, December.
    9. Hagen, Bjoern & Pijawka, David & Prakash, Mihir & Sharma, Shreyash, 2017. "Longitudinal analysis of ecosystem services' socioeconomic benefits: Wastewater treatment projects in a desert city," Ecosystem Services, Elsevier, vol. 23(C), pages 209-217.

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    More about this item

    Keywords

    Environmental Economics and Policy; Land Economics/Use;

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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