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Determinants of Land-Use Change In the United States 1982-1997

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Author Info
Stavins, Robert
Plantinga, Andrew
Lubowski, Ruben

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Abstract

Changes in the use of land in the United States produce significant economic and environmental effects with important implications for a wide variety of policy issues, including protection of wildlife habitat, management of urban growth, and mitigation of global climate change. In contrast to previous descriptive and qualitative analyses of the trends in national land use, this paper uses an econometric approach to isolate the importance of historical changes in land-use profits and key government policies in determining national land-use changes from 1982 to 1997. The policies we examine are the Conservation Reserve Program (CRP) and total government payments to crop producers. We estimate a national-level discrete choice model of changes among the major land-use categories (crops, pasture, forest, urban, range, and CRP) with parcel-level observations of land use and land quality from the U.S.D.A. National Resources Inventory NRI) and measures of countylevel land-use net returns from a variety of sources. We then use fitted values from the econometric model to simulate land-use change from 1982 to 1997 under a series of factual and counterfactual scenarios that isolate the effects of different economic and policy factors. The simulations suggest how changes in economic returns and government policies have driven land-use changes in the past and will continue to affect nationwide land-use changes in the future. For example, we find that the introduction of the CRP and the decline in crop profits were the most significant explanatory factors driving the decline in cropland. Our results highlight some “unintended consequences” of government policies and the importance of net returns to a range of alternative land uses as determinants of land area change for each particular use.

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-03-47.

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Date of creation: 31 Aug 2003
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Handle: RePEc:rff:dpaper:dp-03-47

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Related research
Keywords: land use; econometric model; counterfactual simulation; Conservation Reserve Program (CRP);

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Find related papers by JEL classification:
C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications
Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Schatzki, Todd, 2003. "Options, uncertainty and sunk costs:: an empirical analysis of land use change," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 86-105, July. [Downloadable!] (restricted)
  2. Greene, W., 2001. "Fixed and Random Effects in Nonlinear Models," New York University, Leonard N. Stern School Finance Department Working Paper Seires 01-01, New York University, Leonard N. Stern School of Business-.
    Other versions:
  3. Parks P. J. & Kramer R. A., 1995. "A Policy Simulation of the Wetlands Reserve Program," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 223-240, March. [Downloadable!] (restricted)
  4. Plantinga, Andrew J. & Lubowski, Ruben N. & Stavins, Robert N., 2002. "The effects of potential land development on agricultural land prices," Journal of Urban Economics, Elsevier, vol. 52(3), pages 561-581, November. [Downloadable!] (restricted)
    Other versions:
  5. Plantinga, Andrew J. & Ahn, Soeun, 2002. "Efficient Policies For Environmental Protection: An Econometric Analysis Of Incentives For Land Conversion And Retention," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July. [Downloadable!]
  6. Heimlich, Ralph E. & Anderson, William D., 2001. "Development At The Urban Fringe And Beyond: Impacts On Agriculture And Rural Land," Agricultural Economics Reports 33943, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  7. Miranowski, John & Just, R., 2003. "Understanding Farmland Price Changes," Staff General Research Papers 10696, Iowa State University, Department of Economics.
  8. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  9. Stavins, Robert N & Jaffe, Adam B, 1990. "Unintended Impacts of Public Investments on Private Decisions: The Depletion of Forested Wetlands," American Economic Review, American Economic Association, vol. 80(3), pages 337-52, June.
  10. Claassen, Roger & Tegene, Abebayehu, 1999. "Agricultural Land Use Choice: A Discrete Choice Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), April. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Olivier Parent & Raja Chakir, 2008. "Determinants of land use changes: a spatial multinomial probit approach," University of Cincinnati, Economics Working Papers Series 2008-06, University of Cincinnati, Department of Economics. [Downloadable!]
    Other versions:
  2. Claassen, Roger & Lubowski, Ruben & Roberts, Michael, 2005. "Extent, Location, and Characteristics of Land Cropped Due to Insurance Subsidies," 2005 Annual meeting, July 24-27, Providence, RI 19546, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Langpap, Christian & Hascic, Ivan & Wu, Junjie, 2006. "Predicting Watershed Ecosystems Through Targeted Local Land Use Policies," 2006 Annual meeting, July 23-26, Long Beach, CA 21262, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Langpap, Christian & Wu, Junjie, 2004. "Predicting The Effect Of Local Land Use Regulations On Biodiversity In The Western United States," 2004 Annual meeting, August 1-4, Denver, CO 20038, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Wu, Junjie & Gopinath, Munisamy, 2005. "How Do Location Decisions of Firms and Households Affect Economic Development in Rural America?," 2005 Annual meeting, July 24-27, Providence, RI 19229, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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