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Analyzing the impact of soil contamination on farmland values

Analyzing the impact of soil contamination on farmland values. Eloi Schreurs Sebastien Lizin Steven Van Passel Theo Thewys. Summer school ‘Choice experiments in agricultural and food economics’ – Leuven (BE) – 3 rd July 2013. Eloi Schreurs. Master in economics

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Analyzing the impact of soil contamination on farmland values

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  1. Analyzing the impact of soil contamination on farmland values EloiSchreurs SebastienLizin Steven Van Passel Theo Thewys Summer school ‘Choice experiments in agricultural and food economics’ – Leuven (BE) – 3rd July 2013

  2. Eloi Schreurs Master in economics PhD in environmentaleconomics Hasselt University Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  3. PhD topic Environmentalpollution Externalcost Case study Campineregion Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  4. Problem statement Contamination of farmland Food safety? Health risks? Uncertainty? Soilremediation? Land userestrictions? “Impact soilpollution on farmlandvalues?” Cu Cd As Zn Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  5. Problem statement Hedonicpricinganalysis (HP) Y: Farmland values X: Soil Cd concentrations Result No effect Robust • Y= α+ β1x1+ β2x2+ … + ε Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  6. Problem statement Why? StatedPreference(DCE) Objective Circumventweaknesses HP Provide explanations Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  7. Design Simulate land purchasedecision Select attribute(s) (levels) • Expert knowledge • Contact information • Co-operation Complementarity to HP Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  8. Design Attribute levels Littlevariability Extra consequenceslimited Basedon HP dataset Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  9. Design Experimental design D-efficient design 3 options + opt-out 2 blocks of 8 choice sets Choice set Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  10. Data Survey • In-person interview • 26 municipalities • Simple random sampling Data (n = 200) Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  11. Results Multinomiallogit model Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  12. Results Otherresults Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  13. Results Willingnesstopay Overestimation? Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  14. Results Heterogeneity Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  15. Conclusion Soilcontamination= important in farmer’s land perception Confirmexplanations • Lack of awareness • Lack of compliance • Specialist dairy farmers Otherpossibilities • Non-farmers in HP • Farmland scarcity Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  16. Conclusion Farmer’spreferences Productivity Lot size Land userestrictions Furtherresearch Externalvalidity Valuationpurposes? Private good – nonmarket/public good Summer school Choice experiments - Leuven (BE) – 3rd July 2013

  17. Thankyouforyour attention Summer school Choice experiments - Leuven (BE) – 3rd July 2013

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