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Are Agricultural and Developable Land Prices Governed by the Same Spatial Rules? The Case of Belgium
Author(s) -
Cavailhès Jean,
Thomas Isabelle
Publication year - 2013
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.2012.01265.x
Subject(s) - urbanization , agricultural land , agriculture , agricultural economics , geography , economic geography , land values , population , economics , land use , econometric model , econometrics , ecology , economic growth , demography , archaeology , sociology , biology
In this paper, we test whether farmland and developable land prices are governed by the same determinants (mainly urbanization). We estimate here quasi‐identical econometric equations for both agricultural and developable land markets, instead of the conventional approach of adding variables that capture the urban influence. Using data aggregated at the level of the 589 municipalities of a highly urbanized country (Belgium), we found that the same determinants enter these equations, with slight differences in parameter values: land prices decrease with distance to central business district (developable land: –2.7% per km; farmland: –2.5% per km), and increase with the population of the commune as well as with its demographic growth and with the average income of its inhabitants.