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Valuing Environmental Assets on Rural Lifestyle Properties

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  • Polyakov, Maksym
  • Pannell, David J.
  • Pandit, Ram
  • Tapsuwan, Sorada
  • Park, Geoff

Abstract

Lifestyle landowners value land for its amenities and ecological characteristics and could play an important role in managing and conserving native vegetation in multifunctional rural landscapes. We quantify values of ecosystem services captured by owners of rural lifestyle properties in Victoria, Australia, using a spatial hedonic property price model. The value of ecosystem services provided by native vegetation is maximized when that vegetation occupies about 40 percent of the area of a lifestyle property. Since the current median proportion of native vegetation is 15 percent, most lifestyle landowners could benefit from increasing the area of native vegetation on their properties.

Suggested Citation

  • Polyakov, Maksym & Pannell, David J. & Pandit, Ram & Tapsuwan, Sorada & Park, Geoff, 2013. "Valuing Environmental Assets on Rural Lifestyle Properties," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(01), pages 1-17, April.
    • Handle: RePEc:ags:arerjl:148406
    DOI: 10.22004/ag.econ.148406
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    Cited by:

    1. Ram Pandit & Maksym Polyakov & Rohan Sadler, 2014. "Valuing public and private urban tree canopy cover," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 453-470, July.
    2. Alex M. Lechner & Bernadetta Devi & Ashlee Schleger & Greg Brown & Phill McKenna & Saleem H. Ali & Shanty Rachmat & Muhammad Syukril & Paul Rogers, 2017. "A Socio-Ecological Approach to GIS Least-Cost Modelling for Regional Mining Infrastructure Planning: A Case Study from South-East Sulawesi, Indonesia," Resources, MDPI, vol. 6(1), pages 1-14, January.
    3. Haslem, Angie & Bennett, Andrew F. & Radford, James Q., 2024. "Importance of (semi)natural vegetation on farms for achieving multiple objectives: A conceptual model based on temperate southern Australia," Agricultural Systems, Elsevier, vol. 213(C).
    4. Hagen, Bjoern & Pijawka, David & Prakash, Mihir & Sharma, Shreyash, 2017. "Longitudinal analysis of ecosystem services' socioeconomic benefits: Wastewater treatment projects in a desert city," Ecosystem Services, Elsevier, vol. 23(C), pages 209-217.
    5. Roberto Evangelio & Simon Hone & Moses Lee & David Prentice, 2019. "What Makes a Locality Attractive? Estimates of the Amenity Value of Parks for Victoria," Economic Papers, The Economic Society of Australia, vol. 38(3), pages 182-192, September.
    6. Bauer, Dana Marie & Johnston, Robert J., 2013. "Foreword: The Economics of Rural and Agricultural Ecosystem Services: Purism versus Practicality," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 42(01), pages 1-13, April.
    7. Polyakov, Maksym & Pannell, David J., 2014. "Accounting for private benefits in ecological restoration planning," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169823, Agricultural and Applied Economics Association.
    8. Kalinin, Alexey V. & Sims, Katharine R.E. & Meyer, Spencer R. & Thompson, Jonathan R., 2023. "Does land conservation raise property taxes? Evidence from New England cities and towns," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    9. Diane Pearson, 2021. "Lifestyle Properties, Ecosystem Services, and Biodiversity Protection in Peri-Urban Aotearoa–New Zealand: A Case Study from Peri-Urban Palmerston North," Land, MDPI, vol. 10(12), pages 1-21, December.
    10. Zhang, Fan & Polyakov, Maksym & Fogarty, James & Pannell, David, 2016. "The Capitalized Value of Rainwater Tanks in the Property Market of Perth, Australia," Working Papers 246968, University of Western Australia, School of Agricultural and Resource Economics.

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    More about this item

    Keywords

    Environmental Economics and Policy; Land Economics/Use;

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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