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Gradual Land-Use Change in New Zealand: Results from a Dynamic Econometric Model

Motu Working Paper No. 12-06

26 Pages Posted: 17 May 2012  

Suzi Kerr

Motu Economic and Public Policy Research Trust

Alex Olssen

Motu Economic and Public Policy Research Trust

Date Written: May 16, 2012

Abstract

Rural land use is important for New Zealand’s economic and environmental outcomes. Using a dynamic econometric model and recent New Zealand data, we estimate the response of land use to changing economic returns as proxied by relevant commodity prices. Because New Zealand is small, export prices are credibly exogenous. We show that land use responses can be slow. Our result implies that policy-induced land-use change is likely to be slow or costly.

Keywords: Land use, New Zealand, time series

JEL Classification: Q15, Q24

Suggested Citation

Kerr, Suzi and Olssen, Alex, Gradual Land-Use Change in New Zealand: Results from a Dynamic Econometric Model (May 16, 2012). Motu Working Paper No. 12-06. Available at SSRN: https://ssrn.com/abstract=2061389 or http://dx.doi.org/10.2139/ssrn.2061389

Suzi Kerr (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand
+64 4 383 4250 (Phone)
+64 4 383 4270 (Fax)

Alex Olssen

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

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