Land Conversion and Market Equilibrium - Insights from a Simulated Landscape

26 Pages Posted: 21 Apr 2010 Last revised: 1 May 2010

See all articles by Richard Iovanna

Richard Iovanna

U.S. Department of Agriculture (USDA)

Colin Vance

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)

Date Written: April 21, 2010

Abstract

We specify a system of equations that fully reflects the supply and demand sides of the market for agricultural open space at equilibrium. Although simple, the system is exceedingly flexible and allows for household and parcel heterogeneity. We derive an empirical model directly from the structural equations and contrast this using a simulated landscape with the econometric specification most often found in the literature. We then show how the model can be used to project land-use change into the future and for policy simulation. Finally, we use the model to examine the impact of common land conservation policies in Europe.

Keywords: Land-use change, urban sprawl, simulation

JEL Classification: R15, Q24

Suggested Citation

Iovanna, Richard and Vance, Colin, Land Conversion and Market Equilibrium - Insights from a Simulated Landscape (April 21, 2010). Ruhr Economic Paper No. 182. Available at SSRN: https://ssrn.com/abstract=1593483 or http://dx.doi.org/10.2139/ssrn.1593483

Richard Iovanna

U.S. Department of Agriculture (USDA) ( email )

1301 New York Ave. NW
Washington, DC 20250
United States

Colin Vance (Contact Author)

Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany
0049-201-8149-237 (Phone)

HOME PAGE: http://www.rwi-essen.de

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