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An Empirical Examination of the Timing of Land Conversions in the Presence of Farmland Preservation Programs
Author(s) -
Towe Charles A.,
Nickerson Cynthia J.,
Bockstael Nancy
Publication year - 2008
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2007.01131.x
Subject(s) - variance (accounting) , control (management) , empirical examination , hazard , term (time) , econometrics , natural resource economics , panel data , reduction (mathematics) , economics , agricultural economics , environmental science , business , actuarial science , mathematics , chemistry , physics , geometry , accounting , organic chemistry , management , quantum mechanics
Using a panel of parcel‐level data we estimate a hazard model and find strong evidence that the mere existence of an option to preserve farmland delays decisions to convert farmland to developed uses by about six years, a reduction in median conversion time of 12 to 43% depending on parcel size. Where such delays allow local governments to improve infrastructure or implement stricter growth control measures, benefits of a preservation option may be even more long term. Also, increases in the variance of returns to development tended to slow conversion for parcels with all but the highest lot capacities.