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Rural Land Use and Land Tenure in New Zealand

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  • Levente Tímár

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    (Motu Economic and Public Policy Research and GNS Science)

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    Abstract

    Private land-use decisions are critical for a broad spectrum of environmental and social outcomes, ranging from water quality and climate change to rural income distribution. I use a large dataset of the land-use decisions of New Zealand landowners to estimate a cross-sectional multinomial logit model of land use. In this model, the optimal land-use choice depends on geophysical attributes of the land, the cost of access to markets, and on land tenure (M?ori freehold title versus general freehold title). I employ the estimated relationship in a counterfactual scenario to assess the overall impact of M?ori tenure on the willingness of landowners to supply land for the four most important rural uses in the country: dairying; sheep or beef farming; plantation forestry; and an economically unproductive use, scrub. This allows me to conjecture about the environmental implications of New Zealand’s land-tenure system.

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    Bibliographic Info

    Paper provided by Motu Economic and Public Policy Research in its series Working Papers with number 11_13.

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    Length: 55 pages
    Date of creation: Dec 2011
    Date of revision:
    Handle: RePEc:mtu:wpaper:11_13

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    Keywords: land use; land tenure; discrete choice model;

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    1. Blackman, Allen & Albers, Heidi & Sartorio, Beatriz & Crooks, Lisa, 2003. "Land Cover in a Managed Forest Ecosystem: Mexican Shade Coffee," Discussion Papers dp-03-60, Resources For the Future.
    2. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, January.
    3. Gerald C. Nelson & GVirginia Harris & Steven W. Stone, 2001. "Deforestation, Land Use, and Property Rights: Empirical Evidence from Darién, Panama," Land Economics, University of Wisconsin Press, vol. 77(2), pages 187-205.
    4. Nelson, Gerald & Hellerstein, Daniel, 1997. "Do roads cause deforestation? Using satellite images in econometric analysis of land use," MPRA Paper 25261, University Library of Munich, Germany.
    5. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
    6. Munroe, Darla K. & Southworth, Jane & Tucker, Catherine M., 2002. "The dynamics of land-cover change in western Honduras: exploring spatial and temporal complexity," Agricultural Economics, Blackwell, vol. 27(3), pages 355-369, November.
    7. Arthur Grimes & Andrew Aitken, 2008. "Water, Water Somewhere: The Value of Water in a Drought-Prone Farming Region," Working Papers 08_10, Motu Economic and Public Policy Research.
    8. Nancy E. Bockstael, 1996. "Modeling Economics and Ecology: The Importance of a Spatial Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1168-1180.
    9. Carmen Carri�n-Flores & Elena G. Irwin, 2004. "Determinants of Residential Land-Use Conversion and Sprawl at the Rural-Urban Fringe," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 889-904.
    10. Bell, Kathleen P. & Irwin, Elena G., 2002. "Spatially explicit micro-level modelling of land use change at the rural-urban interface," Agricultural Economics, Blackwell, vol. 27(3), pages 217-232, November.
    11. Richard D. Robertson & Gerald C. Nelson & Alessandro De Pinto, 2009. "Investigating the predictive capabilities of discrete choice models in the presence of spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 367-388, 06.
    12. Robertson, Richard D. & Nelson, Gerald C., 2004. "An Assessment Of Workarounds For Spatial Effects In The Case Of Binary Probit," 2004 Annual meeting, August 1-4, Denver, CO 20234, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Carrion-Flores, Carmen E. & Flores-Lagunes, Alfonso & Guci, Ledia, 2009. "Land Use Change: A Spatial Multinomial Choice Analysis," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49403, Agricultural and Applied Economics Association.
    14. Nelson, Gerald C. & Geoghegan, Jacqueline, 2002. "Deforestation and land use change: sparse data environments," Agricultural Economics, Blackwell, vol. 27(3), pages 201-216, November.
    15. Maksym Polyakov & Daowei Zhang, 2008. "Property Tax Policy and Land-Use Change," Land Economics, University of Wisconsin Press, vol. 84(3), pages 396-408.
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