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Policy Implications of a Behavioural Economics Analysis of Land Use Determinants in Rural Scotland

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  • Toma, Luiza
  • Sutherland, Lee-Ann
  • Barnes, Andrew Peter
  • Renwick, Alan W.
  • McCrum, Gillian
  • Blackstock, Kirsty

Abstract

The paper analyses the land use behaviour of Scottish land managers and the factors influencing it in the current context of the EU rural land use policies. The analysis employs a frequently used behavioural economics method, namely structural equation modelling (SEM). Central to the empirical analysis in this paper is a cross-section database containing data collected in May to June 2009 through telephone interviews of 600 land managers in Scotland. The model tests and estimates the relationships between land use behaviour, i.e., behavioural intentions to change the size of business/holding, and several of its a priori determinants found significant in the scientific literature. The results indicate that a stronger propensity to change size of their businesses is exhibited by younger land managers who intend to pass their land on to family, with larger land size and stronger attitudes towards increasing it, with lower percentage of their income made up from Government support, who are less likely to have perceived changes in regulation and input/output prices as having an impact on their business, who discuss and plan changes in size of business with their banks/building societies, and frequently access sources of information to help with their strategic decisions.

Suggested Citation

  • Toma, Luiza & Sutherland, Lee-Ann & Barnes, Andrew Peter & Renwick, Alan W. & McCrum, Gillian & Blackstock, Kirsty, 2011. "Policy Implications of a Behavioural Economics Analysis of Land Use Determinants in Rural Scotland," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116086, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae11:116086
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    References listed on IDEAS

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    1. Golob, Thomas F., 2003. "Structural equation modeling for travel behavior research," Transportation Research Part B: Methodological, Elsevier, vol. 37(1), pages 1-25, January.
    2. Breen, James P. & Hennessy, Thia C. & Thorne, Fiona S., 2005. "The effect of decoupling on the decision to produce: An Irish case study," Food Policy, Elsevier, vol. 30(2), pages 129-144, April.
    3. Bayard, Budry & Jolly, Curtis, 2007. "Environmental behavior structure and socio-economic conditions of hillside farmers: A multiple-group structural equation modeling approach," Ecological Economics, Elsevier, vol. 62(3-4), pages 433-440, May.
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    Keywords

    Land use; rural policies; Scotland; structural equation modelling; Land Economics/Use;

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