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Influence of environmental policies on farmland prices in the Bretagne region of France

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  • Elodie Letort

    (UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - SMART - Structures et Marchés Agricoles, Ressources et Territoires, ARAP - Association Régionale pour l'Agriculture Paysanne)

  • Chalachew Temesgen Jemberie

    (UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - SMART - Structures et Marchés Agricoles, Ressources et Territoires)

Abstract

The Bretagne region is an agricultural area located in the north-west of France. In addition to urban pressure, the competition for farmland is enhanced by strong environmental regulations and incentives. The objective of this paper is to study the determinants of farmland prices and especially the effects of environmental regulations to explain the spatial disparities observed in Bretagne. This paper mainly focuses on environmental policies which are intended to reduce the agricultural pollution of water with nitrates. Several environmental regulations have been implemented in the Bretagne region, which resulted in a complex zoning system with specific measures. To account for this local characteristic, we use the hedonic pricing model and take into account the potential spatial dependencies between farmland prices. For empirical application, we use a dataset of individual transactions in Bretagne from 2007 to 2010. The estimation results show an increase or a decrease in farmland prices in environmentally sensitive areas depending on the types of regulations applied in these areas. The results also emphasize the importance of spatial interaction in the farmland market.

Suggested Citation

  • Elodie Letort & Chalachew Temesgen Jemberie, 2013. "Influence of environmental policies on farmland prices in the Bretagne region of France," Working Papers hal-01208873, HAL.
  • Handle: RePEc:hal:wpaper:hal-01208873
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    Cited by:

    1. Letort, Elodie & Dupraz, Pierre & Piet, Laurent, 2017. "The impact of environmental regulations on the farmland market and farm structures: An agent-based model applied to the Brittany region of France," Working Papers 253784, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    2. Paul Feichtinger & Klaus Salhofer, 2016. "The Fischler Reform of the Common Agricultural Policy and Agricultural Land Prices," Land Economics, University of Wisconsin Press, vol. 92(3), pages 411-432.
    3. Koemle, Dieter & Lakner, Sebastian & Yu, Xiaohua, 2019. "The impact of Natura 2000 designation on agricultural land rents in Germany," Land Use Policy, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    fonction de prix hédonique; politiques environnementales; économétrie spatiale;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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