How Spatial Differences in Climate Affect Agricultural Land Values in New Zealand
Bibliographic Data
| ID | 22331778 |
|---|---|
| Authors | Farnaz Pourzand (0000-0002-1781-3900, University of Otago, corresponding author) |
| Year | 2024 |
| Volume | 16 |
| Issue | 4 |
| Pages | 739-754 |
| Publication date | 2024-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Weather, Climate, and Society (JOURNAL) |
| Journal identifiers | ISSN: 1948-8327 • E-ISSN: 1948-8335 |
| Publisher | American Meteorological Society (PUBLISHER • US) |
| DOI | 10.1175/wcas-d-24-0042.1 |
| OpenAlex | W4403103416 |
| Language | EN |
| References cited | 6 |
This paper implements the “spatial first differences” (SFD) method to a Ricardian approach to analyze spatial differences in climate and evaluate their impact on farmland values in New Zealand. We use property valuation data from 1993 to 2018 across different agricultural land uses. Ricardian analyses harness cross-sectional variation in climate and farmland values to estimate the effect of climate on agriculture. However, Ricardian studies are vulnerable to omitted variables varying slowly or not varying over time. The idea of the SFD approach is to apply spatial analogous of the “first-differences” estimator for longitudinal analyses to control for omitted variables that vary differently than climate variables among neighboring units. The results suggest that a warmer or drier climate is associated with higher farmland values in New Zealand. These findings may be mediated by productivity differences, costly physical improvements, and climate amenity values. Besides contributing novel insights by applying the Ricardian approach to New Zealand data and overcoming challenges of unobserved heterogeneity with the SFD method, we conclude that, for a better understanding of the welfare implications of climate change, it is crucial to differentiate between the effects of costly improvements and amenity values, apart from the pure climate productivity effect
Agricultural land · Agriculture · Archaeology · Climate change · Environmental resource management · Geography · Land use · land values · Physical geography · Agricultural Economics and Policy · demographic modeling and climate adaptation · Environmental Science · New Zealand Economic and Social Studies · Psychology · Ecology
Will U.S. Agriculture Really Benefit from Global Warming? Accounting for Irrigation in the Hedonic Approach
Climate Econometrics
The Economic Impacts of Climate Change
Regional differences in the effects of drought events on farm profitability in New Zealand
Attitudes of a farming community towards urban growth and rural fragmentation—An Auckland case study
Land Infrastructure Improvement in Agricultural Development
| Citation velocity | historical |
|---|---|
| Highly cited | No |