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Impacts of Agri-Environmental Policies on Land Allocation and Prices


  • Guyomard, Herve
  • Lankoski, Jussi E.
  • Ollikainen, Markku


We used Ricardian framework with heterogeneous land quality to analyse how policies used to support farm incomes, reduce negative agri-environmental externalities and enhance the provision of positive externalities influence land allocation decisions and land prices. Four agri-environmental policy instruments are considered: a uniform area payment, a quality-dependent area payment, a mandatory buffer strip policy and a voluntary buffer strip payment. We also analyse how general tax and monetary policies may affect agricultural land prices. The theoretical framework is illustrated by an application to Finnish agriculture.

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  • Guyomard, Herve & Lankoski, Jussi E. & Ollikainen, Markku, 2005. "Impacts of Agri-Environmental Policies on Land Allocation and Prices," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24466, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae05:24466

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    References listed on IDEAS

    1. Jussi Lankoski & Erik Lichtenberg & Markku Ollikainen, 2010. "Agri-Environmental Program Compliance in a Heterogeneous Landscape," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 1-22, September.
    2. Golden, Bill B. & Featherstone, Allen M., 2003. "Determinants Of Kansas Agricultural Land Values," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35033, Southern Agricultural Economics Association.
    3. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313 Elsevier.
    4. Jussi Lankoski & Markku Ollikainen, 2003. "Agri-environmental externalities: a framework for designing targeted policies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(1), pages 51-75, March.
    5. Barry K. Goodwin & Ashok K. Mishra & François N. Ortalo-Magné, 2003. "What's Wrong with Our Models of Agricultural Land Values?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 744-752.
    6. Joe Dewbre & Jesús Antón & Wyatt Thompton, 2001. "The Transfer Efficiency and Trade Effects of Direct Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1204-1214.
    7. Barry Falk & Bong-Soo Lee, 1998. "Fads versus Fundamentals in Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 696-707.
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