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Influence of environmental policies on farmland prices in the Bretagne region of France

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  • Elodie Letort

    ()
    (Structures et Marchés Agricoles, Ressources et Territoires, INRA
    Association Régionale pour l'Agriculture Paysanne)

  • Chalachew Temesgen Jemberie

    ()
    (Structures et Marchés Agricoles, Ressources et Territoires, INRA)

Abstract

The Bretagne region is an agricultural area located in the north-west of France. In addition to urban pressure, the competition for farmland is enhanced by strong environmental regulations and incentives. The objective of this paper is to study the determinants of farmland prices and especially the effects of environmental regulations to explain the spatial disparities observed in Bretagne. This paper mainly focuses on environmental policies which are intended to reduce the agricultural pollution of water with nitrates. Several environmental regulations have been implemented in the Bretagne region, which resulted in a complex zoning system with specific measures. To account for this local characteristic, we use the hedonic pricing model and take into account the potential spatial dependencies between farmland prices. For empirical application, we use a dataset of individual transactions in Bretagne from 2007 to 2010. The estimation results show an increase or a decrease in farmland prices in environmentally sensitive areas depending on the types of regulations applied in these areas. The results also emphasize the importance of spatial interaction in the farmland market.

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Bibliographic Info

Paper provided by Institut National de la Recherche Agronomique, France in its series Working Papers with number 192198.

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Length: 37 p.
Date of creation: 2013
Date of revision:
Publication status: Published
Handle: RePEc:inr:wpaper:192198

Note: Working Paper SMART-LERECO N° 13-06
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Keywords: politiques environnementales; fonction de prix hédonique; économétrie spatiale;

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