Do Conservation Easements Reduce Land Prices? The Case of South Central Wisconsin
AbstractWhile theory strongly suggests that restricting development rights should reduce land prices, empirical evidence of this effect has been notoriously hard to obtain. Indeed, largely based on this difficulty a Congressional committee has recently recommended that tax benefits for such restrictions be severely curtailed. We collect data on 131 land transactions in South Central Wisconsin, including 19 cases of development-restricted parcels. When we use the whole sample to estimate the impact of conservation easements we replicate the results of Nickerson and Lynch (2001), finding a negative but statistically insignificant effect. However we then show that when the sample is appropriately restricted to a more homogenous group of land parcels, our ability to detect an effect increases dramatically. In particular, for vacant agricultural land we find a statistically significant negative impact of conservation easements that ranges up to 50% of land values
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Bibliographic InfoPaper provided by EconWPA in its series Urban/Regional with number 0506001.
Length: 26 pages
Date of creation: 03 Jun 2005
Date of revision:
Note: Type of Document - pdf; pages: 26. In this paper we use hedonic land price models to estimate the value of development rights.
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Web page: http://22.214.171.124
land use; valuation of development rights; conservation easements; hedonic regression;
Other versions of this item:
- Anderson, Kathryn & Weinhold, Diana, 2005. "Do Conservation Easements Reduce Land Prices? The Case of South Central Wisconsin," Staff Paper Series 484, University of Wisconsin, Agricultural and Applied Economics.
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
This paper has been announced in the following NEP Reports:
- NEP-AGR-2005-06-14 (Agricultural Economics)
- NEP-ALL-2005-06-14 (All new papers)
- NEP-ENV-2005-06-14 (Environmental Economics)
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.:
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