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Gradual Land-use Change in New Zealand: Results from a Dynamic Econometric Model

Author

Listed:
  • Suzi Kerr

    () (Motu Economic and Public Policy Research)

  • Alex Olssen

    () (Motu Economic and Public Policy Research)

Abstract

Rural land use is important for New Zealand’s economic and environmental outcomes. Using a dynamic econometric model and recent New Zealand data, we estimate the response of land use to changing economic returns as proxied by relevant commodity prices. Because New Zealand is small, export prices are credibly exogenous. We show that land use responses can be slow. Our result implies that policy-induced land-use change is likely to be slow or costly.

Suggested Citation

  • Suzi Kerr & Alex Olssen, 2012. "Gradual Land-use Change in New Zealand: Results from a Dynamic Econometric Model," Working Papers 12-06, Motu Economic and Public Policy Research.
  • Handle: RePEc:mtu:wpaper:12_06
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    File URL: http://motu-www.motu.org.nz/wpapers/12_06.pdf
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    References listed on IDEAS

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    6. Schatzki, Todd, 2003. "Options, uncertainty and sunk costs:: an empirical analysis of land use change," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 86-105, July.
    7. Gordon Anderson & Richard Blundell, 1983. "Testing Restrictions in a Flexible Dynamic Demand System: An Application to Consumers' Expenditure in Canada," Review of Economic Studies, Oxford University Press, vol. 50(3), pages 397-410.
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    Cited by:

    1. Allan, Corey & Kerr, Suzi, 2013. "Examining Patterns in and Drivers of Rural Land Values," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand 160191, New Zealand Agricultural and Resource Economics Society.
    2. Schilling, Chris & Kaye-Blake, William & Post, Elizabeth & Rains, Scott, 2012. "The importance of farmer behaviour: an application of Desktop MAS, a multi-agent system model for rural New Zealand communities," 2012 Conference, August 31, 2012, Nelson, New Zealand 136070, New Zealand Agricultural and Resource Economics Society.

    More about this item

    Keywords

    Land use; New Zealand; time series;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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