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Effect of linear investment on agricultural uses on the basis of validity of estimated compensation

Author

Listed:
  • Kwast-Kotlarek, Urszula
  • Hełdak, Maria

Abstract

Purpose. The work takes up topic with the impact of gas pipeline investments in the agricultural space. The reduction in the productivity of agricultural areas is felt by farmers already at the stage of investment construction (loss of benefits, reduction of property value, additional costs for biological reclamation). The purpose of the article is to determine the impact of the high-pressure gas pipeline by open trench method on agricultural land on the basis of estimated compensation. Estimating the value of compensations for field crops and reducing yield and biological reclamation as an issue that raises many doubts. Determining the appropriate compensation for losses incurred in field crops, due to temporary partial occupation of the area is often a matter definitely resolved in civil proceedings by the court. Methodology / approach. The research was supposed to answer the question whether the unit cost of biological reclamation after the installation of the high pressure gas pipeline depends on the type of use and the type of crops being cultivated. Assumed, among others that the decrease in the value of benefits (yielding of plants) is higher, the higher the soil quality class and that the decrease in the value of the property depends on the type of soil valuation class. Determination of the gas pipeline impact of the high-pressure line investment is presented on the example of the 34 km section of the gas pipeline, running through the villages of Zawonia and Długołęka communes, ie Budczyce, Byków, Cielętnik, Czeszów, Kamieniec, Krakowiany, Michałowice, Pęciszów, Piecowice, Tarnowiec, Zaprężyn, and Zawonia (areas located in the Lower Silesia Voivodship). Results. As a result of the conducted research, it was established on the basis of the estimated compensations that the cost of biological reclamation after building the high pressure gas infrastructure does not depend on the type of use and the type of crops being cultivated. It was also found that the decrease in the value of benefits (yielding of plants) is all the greater, the higher the soil quality class. Originality / scientific novelty. The study looked for the answer to the question: Does the unit cost of biological reclamation after the implementation of the high-pressure gas pipeline depend on the type of use and type of crop being cultivated. It was assumed that the decrease in the value of benefits (yielding of plants) is all the greater, the higher the soil quality class and that the decrease in value of benefits (yielding of plants) depends on the type of cultivation per 1 m2. It was also assumed that the decrease in the value of the property depends on the type of soil valuation class. For the purposes of the study, the authors collected data indicating the value of compensation, including to the size of the surface. Practical value / implications. Determination of the impact of high pressure gas pipeline construction using the open trench method on agricultural land on the basis of compensation paid indicates that the reduction in the value of benefits depends on the type of crops.

Suggested Citation

  • Kwast-Kotlarek, Urszula & Hełdak, Maria, 2019. "Effect of linear investment on agricultural uses on the basis of validity of estimated compensation," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 5(3), September.
  • Handle: RePEc:ags:areint:293983
    DOI: 10.22004/ag.econ.293983
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