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The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation

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  • Aliza Fleischer
  • Yacov Tsur

Abstract

In this paper we study agricultural-urban land allocation in light of the rising amenity value of agricultural landscape. A given land area is to be allocated between a number of agricultural activities (crops) and urban use. Each activity (crop) area generates private benefits (profit from agricultural produce) and amenity benefits (open space, aesthetic landscape, hiking trails). Land allocated for housing provides only private benefits. Land markets overlook the social (environmental) role of agricultural land and as a result lead to undersupply of farmland. In an empirical study of an Israeli case, we find the undersupply of farmland and the associated deadweight loss to be substantial. Investigating effects of population and income growth processes, we find that, contrary to market outcomes, the socially optimal allocation may call for more farmland preservation under either process.

Suggested Citation

  • Aliza Fleischer & Yacov Tsur, 2005. "The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation," ERSA conference papers ersa05p55, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa05p55
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    2. Mark Brady & Konrad Kellermann & Christoph Sahrbacher & Ladislav Jelinek, 2009. "Impacts of Decoupled Agricultural Support on Farm Structure, Biodiversity and Landscape Mosaic: Some EU Results," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 563-585, September.
    3. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," Economic Research Papers 270633, University of Warwick - Department of Economics.
    4. Yerushalmi, Erez, 2018. "Using Water Allocation in Israel as a Proxy for Imputing the Value of Agricultural Amenities," Ecological Economics, Elsevier, vol. 149(C), pages 12-20.
    5. Tsur, Yacov, 2020. "Optimal water pricing: Accounting for environmental externalities," Ecological Economics, Elsevier, vol. 170(C).
    6. Yanay Farja & Mariusz Maciejczak, 2021. "Economic Implications of Agricultural Land Conversion to Solar Power Production," Energies, MDPI, vol. 14(19), pages 1-15, September.
    7. Kan, Iddo & Haim, David & Rapaport-Rom, Mickey & Shechter, Mordechai, 2009. "Environmental amenities and optimal agricultural land use: The case of Israel," Ecological Economics, Elsevier, vol. 68(6), pages 1893-1898, April.
    8. Anastasija Novikova & Lucia Rocchi & Bernardas Vaznonis, 2019. "Valuing Agricultural Landscape: Lithuanian Case Study Using a Contingent Valuation Method," Sustainability, MDPI, vol. 11(9), pages 1-13, May.
    9. Salm, J.A. Papineau & Bočkarjova, Marija & Botzen, W.J.W. & Runhaar, H.A.C., 2023. "Citizens' preferences and valuation of urban nature: Insights from two choice experiments," Ecological Economics, Elsevier, vol. 208(C).
    10. Carmelo Picone & Roberto Henke & Myriam Ruberto & Emilio Calligaris & Raffaella Zucaro, 2021. "A Synthetic Indicator for Sustainability Standards of Water Resources in Agriculture," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    11. Bockarjova, Marija & Botzen, Wouter J.W. & Koetse, Mark J., 2020. "Economic valuation of green and blue nature in cities: A meta-analysis," Ecological Economics, Elsevier, vol. 169(C).
    12. Feitelson, Eran & Horowitz-Harel, Anat & Levin, Noam & Mintz, Zvi & Steenekamp, Guy & Zaban, Shaul, 2021. "Haste makes waste: On the implications of rapid planning in Israel," Land Use Policy, Elsevier, vol. 103(C).
    13. Gosens, Tom & Rouwendal, Jan, 2018. "Nature-based outdoor recreation trips: Duration, travel mode and location," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 513-530.
    14. Rotem Zelingher & Andrea Ghermandi & Enrica Cian & Malcolm Mistry & Iddo Kan, 2019. "Economic Impacts of Climate Change on Vegetative Agriculture Markets in Israel," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 679-696, October.
    15. Jonathan Kaminski & Iddo Kan & Aliza Fleischer, 2013. "A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 70-93.
    16. Banzhaf, H. Spencer, 2009. "Economics at the Fringe: Non-Market Valuation Studies and their Role in Land Use Plans in the United States," MPRA Paper 101193, University Library of Munich, Germany.
    17. Mara Thiene & Yacov Tsur, 2013. "Agricultural Landscape Value and Irrigation Water Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 641-653, September.

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