Assessing the Impacts of Climate Change on Agricultural Land Markets: A Comprehensive Review of Economic Models

Climate change challenges the allocation mechanisms of agricultural land, yet there is currently no systemic framework for assessing its impact on land markets. We conceptualise the climate change–land market nexus and identify its methodological and thematic issues. To support our original framework, we selectively review how agricultural economic approaches address it. We highlight that the impact of climate change on land markets has been studied at various scales, from global land use adjustments to micro-level farm adaptations, and each of these scales relates with a specific approach. The modelling of climate change effects mainly refers to land conditions, e.g. land state, use or cover change. The land market is usually addressed in rather segmented views: Models focus either on land demand, land value, or transaction mechanisms. Results also show different methods to address micro and macro levels, spatial and temporal dimensions, dynamics, and uncertainties. This paper provides a comprehensive review of agricultural economics, outlining gaps and research perspectives. It paves the way for further work on how to design better policies for effective land markets in the climate change context.