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Modeling Land-Use Decisions in Rural Areas

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  • John B. Crihfield

Abstract

A model of land-use choice in rural areas is developed in this article. The optimization condition from the model is applied to a land-use dispute in west central Illinois that evaluates corn versus coal, and yields quantitative estimates of alternative land-use values. Several scenarios were analyzed, including those that reflect market distortions caused by both air and water pollution and Federal subsidies to agriculture. Results from these evaluations provide the basis for cost-benefit analysis of rural land-use decisions when distortions cause markets to allocate land inefficiently.

Suggested Citation

  • John B. Crihfield, 1994. "Modeling Land-Use Decisions in Rural Areas," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 16(1), pages 103-112.
    • Handle: RePEc:oup:revage:v:16:y:1994:i:1:p:103-112.
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    File URL: http://hdl.handle.net/10.2307/1349525
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