Land Values in Frontier Settlements of the Brazilian Amazon
Summary Even in the absence of formal land markets, estimated values on agricultural frontiers of the Brazilian Amazon reflect the value-adding characteristics of the land. Understanding these characteristics provides important insights to the incentives (or dis-incentives) to protect tropical forests and reduce deforestation. A hedonic model is used to identify characteristics determining smallholder land values on the Amazon frontier. Years on the lot, area under agricultural production, and house values were found to add value; while distance from the nearest city and area under forest decreased values. Characteristics that do not appear to significantly affect land value include pasture area and the claim to hold definitive title. By not adding significantly to land values, pasture may be used to establish property rights rather than to increase land value through positive rents. Our results also confirm the underutilization of the forest resource by smallholders.
References listed on IDEAS
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.:
- Leggett, Christopher G. & Bockstael, Nancy E., 2000. "Evidence of the Effects of Water Quality on Residential Land Prices," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 121-144, March.
- Can, Ayse, 1992. "Specification and estimation of hedonic housing price models," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 453-474, September.
- Kenneth M. Chomitz & Timothy S. Thomas, 2003. "Determinants of Land Use in Amazônia: A Fine-Scale Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 1016-1028.
- Patrick de Fontnouvelle & Sergio H. Lence, 2002. "Transaction Costs and the Present Value “Puzzle” of Farmland Prices," Southern Economic Journal, Southern Economic Association, vol. 68(3), pages 549-565, January.
- Yue Jin Shi & Timothy T. Phipps & Dale Colyer, 1997. "Agricultural Land Values under Urbanizing Influences," Land Economics, University of Wisconsin Press, vol. 73(1), pages 90-100.
- Lloyd, Tim, 1994. "Testing a Present Value Model of Agricultural Land Values," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 209-223, May.
- Bastian, Chris T. & McLeod, Donald M. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 2002. "Environmental amenities and agricultural land values: a hedonic model using geographic information systems data," Ecological Economics, Elsevier, vol. 40(3), pages 337-349, March.
- J. S. Shonkwiler & J. E. Reynolds, 1986. "A Note on the Use of Hedonic Price Models in the Analysis of Land Prices at the Urban Fringe," Land Economics, University of Wisconsin Press, vol. 62(1), pages 58-63.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Perz, Stephen G. & Walker, Robert T., 2002. "Household Life Cycles and Secondary Forest Cover Among Small Farm Colonists in the Amazon," World Development, Elsevier, vol. 30(6), pages 1009-1027, June.
- Feng Xu & Ron C. Mittelhammer & Paul W. Barkley, 1993. "Measuring the Contributions of Site Characteristics to the Value of Agricultural Land," Land Economics, University of Wisconsin Press, vol. 69(4), pages 356-369.
- David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
- Smith, V Kerry & Huang, Ju-Chin, 1995. "Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 209-227, February.
- Lavin, Angeline M & Zorn, Thomas S, 2001. "Empirical Tests of the Fundamental-Value Hypothesis in Land Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 22(1), pages 99-116, January.
When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2390-2401. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.