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Valuing Environmental Assets on Rural Lifestyle Properties

Author

Listed:
  • 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(1), April.
    • Handle: RePEc:ags:arerjl:148406
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. 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(1), April.
    3. 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.

    More about this item

    Keywords

    ecosystem services; lifestyle landowners; native vegetation; spatial hedonic model; 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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