Premium
Modeling Land‐Use Decisions in Rural Areas
Author(s) -
Crihfield John B.
Publication year - 1994
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349525
Subject(s) - business , land use , environmental planning , environmental resource management , natural resource economics , geography , economics , civil engineering , engineering
A model of land‐use choice in rural areas is developed in this article. The optimization condition from the model is applied to a land‐use dispute in west central Illinois that evaluates corn versus coal, and yields quantitative estimates of alternative land‐use values. Several scenarios were analyzed, including those that reflect market distortions caused by both air and water pollution and Federal subsidies to agriculture. Results from these evaluations provide the basis for cost‐benefit analysis of rural land‐use decisions when distortions cause markets to allocate land inefficiently.