Using a Bundled Amenity Model to Estimate the Value of Cropland Open Space and Determine an Optimal Buffer Zone
By: Kuminoff, Nicolai V.
Kuminoff, Nicolai V., Using a Bundled Amenity Model to Estimate the Value of Cropland Open Space and Determine an Optimal Buffer Zone, Journal of Agricultural and Resource Economics, Volume 34, Issue 1, April 2009, Pages 68-90
This study investigates how proximity to cropland influences residential property values and considers the public policy implications. The hedonic model generalizes previous studies by recognizing that the bundle of externalities generated by crop production may increase the price of some homes and decrease the price of others, depending on their respective locations. Using an instrumental variables approach to estimate the model for San Joaquin County, California, suggests that proximity to cropland increases the value of most, but not all, single-family homes near the agricultural-urban edge. The results imply an agricultural buffer zone of 68 meters would mitigate most cropland disamenities.