Agricultural land protection near the urban-rural fringe is a goal of many jurisdictions, and none more so than British Columbia, Canada, which uses a provincial-wide zoning scheme to prevent subdivisions and non-agricultural uses of the land. A preferential tax regulation scheme for farmers is also in place, as in many jurisdictions. Small scale hobby farmers are present at the urban fringe near Victoria (the capital) both on land inside and outside of the Agricultural Land Reserve (ALR). The goal of this paper is to investigate whether or not the establishment of hobby farms creates problems for agricultural land preservation. We make use of a GIS (geographic information system) to construct detailed spatial variables and we employ two models to analyse our parcel-level data set: an hedonic pricing model and a limited dependent variable model. The conclusions drawn from the results in this paper would likely apply to other jurisdictions which seek to protect agricultural land in the urban fringe.
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Paper provided by University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group in its series Working Papers with number
2008-01.
Find related papers by JEL classification: R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns
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