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Land Market Interactions between Heterogeneous Agents in a Heterogeneous Landscape-Tracing the Macro-Scale Effects of Individual Trade-Offs between Environmental Amenities and Disamenities

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  • Tatiana Filatova
  • Anne van der Veen
  • Dawn C. Parker

Abstract

"Heterogeneity in both the spatial environment and economic agents is a crucial driver of land market dynamics. We present an agent-based land market model where land from agriculture use is transferred into urban. The model combines the microeconomic demand, supply, and bidding foundations of spatial economics models with the spatial heterogeneity of spatial econometric models in a single methodological platform. Heterogeneous agents exchange heterogeneous spatial goods via simulated bilateral market interactions. We model a coastal city where both coastal amenities and flooding or erosion disamenities drive land market outcomes, facilitating separate analysis of the effects of each driver on land rents and land development patterns. We also analyze the implications of homogeneous versus heterogeneous but unbiased flood risk perceptions. Since buyers with low risk perceptions drive market outcomes, spatial development under heterogeneous risk perceptions differs qualitatively, with more expansion into risky areas. Our results highlight the shortcomings of policy models based on representative agent assumptions and the importance of including agent-level data in empirical modeling." Copyright (c) 2009 Canadian Agricultural Economics Society.

Suggested Citation

  • Tatiana Filatova & Anne van der Veen & Dawn C. Parker, 2009. "Land Market Interactions between Heterogeneous Agents in a Heterogeneous Landscape-Tracing the Macro-Scale Effects of Individual Trade-Offs between Environmental Amenities and Disamenities," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(4), pages 431-457, December.
  • Handle: RePEc:bla:canjag:v:57:y:2009:i:4:p:431-457
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    References listed on IDEAS

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    1. repec:kap:compec:v:50:y:2017:i:4:d:10.1007_s10614-016-9637-5 is not listed on IDEAS
    2. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2011. "Incorporating Spatial Complexity into Economic Models of Land Markets and Land Use Change," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 3), pages 1-20, December.
    3. James Nolan & Dawn Parker & G. Cornelis van Kooten & Thomas Berger, 2009. "An Overview of Computational Modeling in Agricultural and Resource Economics," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(4), pages 417-429, December.
    4. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91.
    5. Chen, Yong & Irwin, Elena G. & Jayaprakash, Ciriyam, 2011. "An Agent-Based Model of Exurban Land Development," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103641, Agricultural and Applied Economics Association.
    6. Filatova, Tatiana & Parker, Dawn Cassandra & van der Veen, Anne, 2011. "The Implications of Skewed Risk Perception for a Dutch Coastal Land Market: Insights from an Agent-Based Computational Economics Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 3), pages 1-19, December.
    7. repec:gam:jsusta:v:10:y:2018:i:6:p:1924-:d:151426 is not listed on IDEAS
    8. James R. Meldrum, 2016. "Floodplain Price Impacts by Property Type in Boulder County, Colorado: Condominiums Versus Standalone Properties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 725-750, August.
    9. repec:spr:nathaz:v:87:y:2017:i:1:d:10.1007_s11069-017-2763-0 is not listed on IDEAS
    10. Elena G. Irwin & Andrew M. Isserman & Maureen Kilkenny & Mark D. Partridge, 2010. "A Century of Research on Rural Development and Regional Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 522-553.

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