Irrigated land value estimates from land prices

Carlos Arias

Abstract

In this paper, we estimate the value of irrigated land in the province of Leon (Spain) using land prices (irrigated and non irrigated) for two different uses (crop production and pasture) in ten different districts. The value of benefits associated with irrigation can be estimated by comparing the price of an irrigated plot of land with a similar plot of non irrigated land. The logical difficulty of finding these two similar (except for water) plots of land can be overcome using regression analysis where the effect of irrigation on land prices can be estimated after controlling for other differences in the plots of land analyzed. In the present paper, using an econometric model, we estimate the average prices associated with irrigated and non irrigated land. The difference among these average prices is an estimate of the value of irrigation. The results of this paper can be used in the analysis of new irrigation projects.

Keywords

Hedonic prices; Land prices; Water value

Subject classification

Q15, Q11.

Full Text:

PDF

References

Arguea, N.M. y Hsiao, C. (1993). Econometric Issues of Estimating Hedonic Price Functions. Journal of Econometrics 56: 243-267. https://doi.org/10.1016/0304-4076(93)90108-H

Caballer, V. y Guadalajara, N. (1998). Valoración económica del agua de riego. Mundi-Prensa, Madrid.

Crouter, J. (1987). Hedonic Estimation Applied to Water Rights Markets. Land Economics 63(3): 259-269. https://doi.org/10.2307/3146835

Dauber, J.T. y Young, R.A. (1981). Recreational Demand for Maintaining Instream Flows: A Contingent Valuation Approach. American Journal of Agricultural Economics 63(4): 666-676. https://doi.org/10.2307/1241209

Decimadevilla, E. (1997). Regadío frente a secano. Secretariado de Publicaciones, Universidad de Valladolid.

Garrido, A. (1999). El mercado del agua. Una visión desde la perspectiva económica. Revista Mensual de Gestión Ambiental 1(7): 31-41.

Greene, W.H. (1999). Análisis Econométrico. Tercera edición. Prentice Hall.

Griliches, Z. (1971). Price Indexes and Quality Change. Studies in New Methods of Measurement. Harvard University Press, Cambridge. https://doi.org/10.4159/harvard.9780674592582

Hartman, L.M. y Anderson, R.L. (1962). Estimating the Value of Irrigation Water from Farm Sales in Northeastern Colorado. Journal of Farm Economics 44(1): 207-213. https://doi.org/10.2307/1235499

Loomis, J.B. (1987). The Economic Value of Instream Flow: Methodology and Benefit Estimates for Optimum Flows. Journal of Environmental Economics and Management 24(2): 169-179.

Milliman, J.W. (1959). Land Values as Measures of Primary Irrigation Benefits. Journal of Farm Economics 41(2): 234-243. https://doi.org/10.2307/1235148

Marín Rivero, M.A. (1993). El Mercado de la Tierra Agraria: Estudio de la Provincia de León. Secretariado de Publicaciones, Universidad de León.

Michelsen, A.M. y Young, R.A. (1993). Optioning Agricultural Water Rights for Urban Water Supplies During Drought. American Journal of Agricultural Economics 75(4): 1010-20. https://doi.org/10.2307/1243988

Romero, C. (1997). Economía de los recursos ambientales y naturales. Alianza Editorial, Madrid.

Rosen, S. (1974). Hedonic Prices and Implicit Markets: Product Differentiation in Perfect Competition. Journal of Political Economy 82: 34-55. https://doi.org/10.1086/260169

Smith, V.K. y Desvouges, W.H. (1986). Measuring Water Quality Benefits. Kluwer Nijhoff Academic Publisher. https://doi.org/10.1007/978-94-009-4223-3

Sumpsi, J.M, Garrido, A., Blanco, M., Varela, C. e Iglesias, E. (1998). Economía y Política de Gestión del Agua en la Agricultura. Mundi-Prensa, Madrid.

Torell, A., Libbin, J. y Miller, M. (1990). The Market Value of Water in the Ogalla Aquifer. Land Economics 66(2): 163-175. https://doi.org/10.2307/3146366

Xu, F., Mittlehammer, R.C. y Barkley, P.W. (1993). Measuring the Contributions of Site Characteristics to the Value of Agricultural Land. Land Economics 69(4): 356-369. https://doi.org/10.2307/3146453

Young, H.P., Okada, N. y Hashimoto, T. (1982). Cost Allocation in Water Resources Development. Water Resources Research 18(3): 463-475. https://doi.org/10.1029/WR018i003p00463

Young, H.P. (ed). (1985). Cost Allocation: Methods, Principles and Practices. Elsevier Science Publishers, Amsterdam. https://doi.org/10.1596/0-8213-3745-9

Young, R.A. (1996). Measuring Economic Benefits for Water Investments and Policies. World Bank Technical paper, Washington D.C.

Ward, F. (1987) Economics of Water Allocation to Instream Uses: Evidence from a New Mexico Wild River. Water Resources Research 23(3): 381-392. https://doi.org/10.1029/WR023i003p00381

Abstract Views

285
Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.




 Universitat Politècnica de València

e-ISSN: 2174-7350   ISSN: 1578-0732   https://doi.org/10.4995/earn