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Open Space: Rural Amenities, Values and Policy Issues. Don McLeod Agricultural & Applied Economics University of Wyoming And the help of many Colleagues. LAYOUT. So What? Who Cares? Examples/Typologies of Amenities Valuation Policy Issues. Relevance of Rural Open Space. Biodiversity
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Open Space: Rural Amenities, Values and Policy Issues Don McLeod Agricultural & Applied Economics University of Wyoming And the help of many Colleagues
LAYOUT • So What? Who Cares? • Examples/Typologies of Amenities • Valuation • Policy Issues
Relevance of Rural Open Space • Biodiversity • Groundwater • Arable Lands • Recreation • Scenic Views • Economic Importance to Rural Communities • Stock of Developable Lands • Private Property
Nonmetropolitan population change, 2000 to 2010 Source: U.S. Census Bureau, Census 2000, 2010
Open Space Conversion • Energy • Residential • Fragmentation/Parcelization • Adversely Impacting Open Space Attributes
INTERESTED PARTIES IN AMENITY DEBATE • Landowners • Development Agents • NGOs/LTAs • Grass Root Community Groups • Public Use/Management Agencies • Tax Entities (IRS, Dept of Revenue) • Extremely Varied Interests in Definition/Valuation
Conceptual Underpinnings • Land = Input for Agriculture • Land = Input for Development • Land = Final Consumer Good • Land = Source of Public Goods
AMENITY TYPES • Faushold & Lilieholm (EM, 1999, p.308): Open space “…undeveloped land that retains most of its natural characteristics (such as) forest, grazing, agricultural lands and recreation areas .” • Bergstrom (Pres, 2002): Typology of Values: “Amenity Values are derived directly from the land (landscape) and have large non-consumptive or passive use values.”
Rocky Mountain Landscape:Arid River framed by Distant Alpine View
AMENITY TYPES (CONT.) • Randall (ERAE, 2002): Multifunctionality of Agricultural Lands: Valuation of Amenities via Type, Quality and Accessibility • Surveys of 4 Rocky Mtn Counties (1997-2001): Wildlife Habitat, Water Quantity & Quality, Working Landscapes, Scenic Views; Approval of CEs & Zoning
WHAT AMENITIES ARE DEMANDED…by whom and how? • LO Focus Groups (Miller et al 2010): Wildlife & Open Space Provision; Links to Rural Communities; No Access; Management Control • LTA Focus Groups (Keske et al 2011): Water Quality Protection; Biodiversity; Cultural Importance; Large Block; Landowner Interest; Monitoring & Enforcement;
Stated Payments for Farmland Protection (Bergstrom & Ready, 2003) • Generic “any” Agricultural Lands by State • Prime “productivity” Agricultural Lands by State
Total Willingness to Pay for Farmland Amenity Protection Graphed Against Total Farmland Acres (2003 $) Source: J. Bergstrom and R. Ready (2003)
Some Stated Preference Research • Public Preferences for Land Preservation: Bergstrom et al., 1985 McLeod et al., 1999 Duke & Lynch, 2006, 2007 Johnston & Duke, 2008 • Landowner Preferences for Land Preservation: Phipps, 1983 Lynch & Lovell, 2003 Duke, 2004
Stated Preferences • CVM: WTP for Land Attributes (each) • Which Good(s)? Service(s)? ----------------------------------------------------- • Stated Choice: WTP for Bundle Choices • Data Requirements for # of Attributes? • Which Attributes? Levels/Quality? Specification? • EG McGaffin et al 2010; Cropper et al 2013
Revealed Preferences • Wyoming Agricultural Land Values • Finding Attribute Values based on Land Prices • GIS to Quantify Attributes • Bastian et al (2002); Wasson et al (in press): *Elk Habitat; Trout Habitat *Remoteness *Access to Blue Ribbon Public Lands *Index of Variety of Scenery & Specific Scenery Components
Opportunity Cost of Development • Cost of Community/Public Services • AG v. Subdivision Use (Coupal et al 2003) • Density of Rural Development (Lieske et al 2012; and Lieske et al forthcoming) • Impacts on Rural Public Service Provision and Budgets
More Opportunity Costs: Wildland Urban Interface • Wild Fire Management • Wildlife Damages • Access to Public Lands • Watersheds/Headwaters Protection • Other Trans-jurisdictional Issues? • Heterogeneity of Ownership?
NATIONAL T&E Species Intact Ecosystems (Y2Y) Trans-boundary Watersheds Prime Agricultural Land for Nat. Food Security LOCAL Wildlife Habitat Scenic/Pastoral Views Groundwater Recreation Prime Agricultural Land for Local Economy and Well Being Distribution of Benefits ??
Summary • Rural/Agricultural Lands: What (Where?) are the Valued Attributes? • Who pays? Who gets Paid? WTP/WTA? • How Might Fiscal Efficiency be Addressed (Minimizing the Opportunity Cost of Development)? • Tradeoffs: Optimal Development v. Optimal Amenities
Policy Implications • How are Amenities Incorporated into Private/Public Land Use Planning/Protection Efforts? VALUES • How Can Public/Private Sectors Partner To Avoid Duplication Effort/Funding? EFFICIENCY • Avoid Conflicts In Management? MINIMIZE TRANSACTIONS COSTS • Markets? Regulation? ALLOCATION • “True” Cost of Development/Land Conversion? (AG to Other Uses)