A Forward-Looking Ricardian Approach: Do land markets capitalize climate change forecasts?

Severen, Christopher; Costello, Christopher; Deschênes, Olivier

doi:10.1016/j.jeem.2018.03.009

Cited by 55 publications

(16 citation statements)

References 53 publications

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“…For example, if higher elevations are expected to become better suited for grape production under future climate changes, this trait should raise the current value of higher-elevation sites and be reflected in the estimated elevation parameters. In fact, a recent study by Severen, Costello, and Deschenes (2016) finds evidence that climate-change forecasts are being reflected in current farmland prices.…”

Section: Analytical Approachmentioning

confidence: 99%

Terroir in the New World: Hedonic Estimation of Vineyard Sale Prices in California

2017

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In the Old-World vineyards of Europe, a key concept that plays an important role in the production and appreciation of wines is terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We examine whether terroir matters in the New-World wines produced in California's Napa and Sonoma Counties by conducting a hedonic price analysis of vineyard sales over the period 1991 to 2007 to determine the relative effects on vineyard sales prices of designated appellations versus biophysical site attributes commonly associated with terroir, such as slope, aspect, elevation, and climate. Because vineyards that are sold are not necessarily representative of the universe of vineyards, we employ Heckman's two-stage econometric approach to control for possible sample-selection bias. We find that intrinsic site attributes and designated appellations influence vineyard prices, although our results are stronger and more consistent with regard to the influence of appellations. This finding indicates that terroir matters economically, even if the designated appellations have relatively less connection in reality with terroir. (JEL Classifications: C2, Q11)

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Section: Analytical Approachmentioning

confidence: 99%

Terroir in the New World: Hedonic Estimation of Vineyard Sale Prices in California

2017

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“…It is noteworthy that some land-use explanations have explicitly accounted for broadly defined conditions of the environment, such as Ricardian theory accounting for the impacts of land quality (e.g., suitability for agriculture) on economic rent, which have been adapted to include future climate change impacts (Severen et al, 2018). Variations in the theory of the isolated state account for transportation impacts, which in turn can be affected by environmental conditions, such as the role of major waterways disrupting the zonation of land-uses surrounding cities.…”

Section: Proposed Frameworkmentioning

confidence: 99%

Framing the search for a theory of land use

Turner

Meyfroidt

Kuemmerle

et al. 2020

Journal of Land Use Science

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Land system science and affiliated research linked to sustainability require improved understanding and theorization of land and its change as a social-ecological system (SES). The absence of a general land-use theory, anchored in the social subsystem but with explicit links to the environmental subsystem, hampers this effort. Drawing on land-use explanations, meta-analyses, and associated frameworks, we advance a broad framework structure of eight elements-aggregations of explanatory variableswith links to the biophysical subsystem, for systematic comparisons of extant explanations. Tests and models can be employed to identify which set of variables and their configurations provide robust explanations of across land uses, identifying the potential for theory development. The framework and its application are applicable to both top-down and bottom-up explanatory approaches employed in the social sciences. Links to the environmental subsystem invite future exploration of SES explanations that reach across the different dimensions of global change and sustainability science.

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“…Applying the hedonic regression to environmental amenities and dis-amenities in the housing market began with Ridker and Henning's (1967) pioneering contribution on the effects of air pollution on property prices. A long tradition of hedonic analysis in environmental economics has followed, with recent studies evaluating the impacts of proximity to open spaces (Walls, Kousky, and Chu 2015), beach erosion (Gopalakrishnan et al 2011), climate change forecasts (Severen, Costello, and Deschenes 2018), wildfire risk (McCoy…”

Section: Empirical Strategymentioning

confidence: 99%

Flood Risk Perception in the Housing Market and the Impact of a Major Flood Event

Hennighausen

Suter

2020

Land Economics

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The impact of flood events on flood risk perception has important implications for policy. Applying a novel dataset featuring the flooding extents from a severe event in Colorado, we disentangle inundated properties from "near misses," defined as structures not directly flooded but located inside the 100-year floodplain. Using a triple-difference hedonic framework, we show that inundated properties inside the floodplain underwent a decrease in price after the flood, while near misses saw a relative price increase. We speculate that inundated properties are perceived as being riskier and near misses relatively less risky, suggesting the possible influence of the availability heuristic or Bayesian learning.

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A Forward-Looking Ricardian Approach: Do land markets capitalize climate change forecasts?

Cited by 55 publications

References 53 publications

Terroir in the New World: Hedonic Estimation of Vineyard Sale Prices in California

Terroir in the New World: Hedonic Estimation of Vineyard Sale Prices in California

Framing the search for a theory of land use

Flood Risk Perception in the Housing Market and the Impact of a Major Flood Event

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