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Land Values in Frontier Settlements of the Brazilian Amazon

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  • Merry, Frank
  • Amacher, Gregory
  • Lima, Eirivelthon

Abstract

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.

Suggested Citation

  • Merry, Frank & Amacher, Gregory & Lima, Eirivelthon, 2008. "Land Values in Frontier Settlements of the Brazilian Amazon," World Development, Elsevier, vol. 36(11), pages 2390-2401, November.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:11:p:2390-2401
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    References listed on IDEAS

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    Cited by:

    1. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    2. Patrick Doupe, 2014. "Reduced Deforestation and Economic Growth," CCEP Working Papers 1402, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
    3. Bowman, Maria S., 2016. "Impact of foot-and-mouth disease status on deforestation in Brazilian Amazon and cerrado municipalities between 2000 and 2010," Journal of Environmental Economics and Management, Elsevier, vol. 75(C), pages 25-40.
    4. F. Souty & T. Brunelle & P. Dumas & B. Dorin, & P. Ciais & R. Crassous, 2012. "The Nexus Land-Use Model, an Approach Articulating Biophysical Potentials and Economic Dynamics to Model Competition for Land-Uses," Working Papers 2012.16, Fondazione Eni Enrico Mattei.
    5. Anonymous & Phélinas, Pascale, 2014. "A Hedonic Analysis Of Agricultural Land Values In A Gm Soybean Area Of Argentina," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182750, European Association of Agricultural Economists.
    6. Doupe, Patrick, 2014. "Reduced deforestation and economic growth," Working Papers 249421, Australian National University, Centre for Climate Economics & Policy.
    7. Barua, Sepul K. & Uusivuori, Jussi & Kuuluvainen, Jari, 2012. "Impacts of carbon-based policy instruments and taxes on tropical deforestation," Ecological Economics, Elsevier, vol. 73(C), pages 211-219.

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