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Land Markets in Europe: Institutions and Market Outcomes

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  • Pavel Ciaian
  • d'Artis Kancs
  • Dusan Drabik

Abstract

In this chapter, we review land market institutions in the European Union (EU) and their potential impact on land markets. We first review land tenure-/ownership regulations and find that they vary heavily across EU Member States. Four types of tenure-/ownership measures are implemented in the EU: to protect the tenant, to protect the owner, to protect the (non-farm) land owner, and to prevent land fragmentation. We then examine EU land-related environmental regulations whose general objective is to address land market failures linked to externalities and the provision of public goods. Despite possibly reducing private benefits of land owners or users, environmental regulations may generate welfare gains to society by improving the environmental services on land. Finally, we investigate how area-based subsidies affect land prices. These subsidies are empirically found to be partially capitalized into land values, albeit at a lower rate than suggested by theory.

Suggested Citation

  • Pavel Ciaian & d'Artis Kancs & Dusan Drabik, 2016. "Land Markets in Europe: Institutions and Market Outcomes," EERI Research Paper Series EERI RP 2016/10, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2016_10
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    More about this item

    Keywords

    Land markets; institutions; tenure; ownership; externalities; public goods.;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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