Exit Timing Decisions under Land Speculation and Resource Scarcity in Agriculture

This paper explores the concept of agricultural resilience in the context of climate change related water scarcity. Specifically, the impact of water scarcity on agricultural production is analyzed to derive the timing of exit decisions for farmers faced with the prospect of declining profitability in agriculture but increasing benefits from land rezoning in future. The prospects of land rezoning are modeled as a poison process which may or may not be influenced by farmer’s water abstraction decisions. Selling out of agriculture before land rezoning has an impatience cost as the farmer does not gain the maximum speculative rewards. The analysis highlights the role of such speculative rewards in making farmers resilient to declining profitability in agriculture and also identifies the circumstances under which the water prices may be an ineffective policy tool for allocating water. An empirical application is performed using the above model for the case of a drought prone region in Western Australia.agricultural resilience, exit timing, water scarcity, climate change, Environmental Economics and Policy, Farm Management, Land Economics/Use, Resource /Energy Economics and Policy,

The welfare costs of urban outdoor water restrictions

Outdoor water restrictions are usually implemented as bans on a particular type of watering technology (sprinklers), which allow households to substitute for labour-intensive (hand-held) watering. This paper presents a household production model approach to analysing the impact of sprinkler restrictions on consumer welfare and their efficacy as a demand management tool. Central to our empirical analysis is an experimentally derived production function which describes the relationship between irrigation and lawn quality. We demonstrate that for a typical consumer complete sprinkler bans may be little more effective than milder restrictions policies, but are substantially more costly to the household.household model, urban water demand, urban water restrictions, Resource /Energy Economics and Policy,

Valuing Urban Wetlands of the Gnangara Mound: A Hedonic Property Price Approach in Western Australia

Up to 60% of potable water supplied to Perth in Western Australia is extracted from the Gnangara mound. Many of the urban wetlands above the Mound are groundwater-dependent. Excessive groundwater extraction and climate change have resulted in a decline in water levels in the wetlands. This study estimates the value of urban wetlands in three local government districts in the Perth metropolitan region using the hedonic property price approach. Preliminary results found that proximity to wetlands influences the sales prices of properties. The marginal implicit price of reducing the distance to the nearest wetland by 1 metre, evaluated at the mean sales value, is AU$463. If there is more than one wetland within 1.5 kilometres of a property, the second wetland will help increase the property price by AU$6,081. For a 50 ha wetland, we estimate the total premium of on sales due to wetland proximity is AU$220 million, based on average property characteristics and medium house density. These results will help inform policy makers and land developers on the value of conserving existing urban wetlands, creating new wetland areas and urbanising rural wetlands.groundwater, housing development, aquifer, marginal implicit price, Land Economics/Use,

Modelling farmer choices for water security measures in the Litani river basin in Lebanon

The final publication is available at Elsevier via https://dx.doi.org/10.1016/j.scitotenv.2018.07.410 © 2019. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/Lebanon is facing an increasing water supply deficit due to the increasing demand for freshwater, decreasing surface and groundwater resources and malfunctioning water governance structures. Technological and policy changes are needed to alleviate the impact of water scarcity and secure water in the future. This paper investigates farmers' preferences and willingness to pay (WTP) in a choice experiment for a series of water saving measures at plot and irrigation district level, including more timely information of water delivery. These measures are expected to strengthen water security and use water more efficiently. Farmers are willing to pay higher water prices of $0.32/m3 and$0.22/m3 to support the implementation of water saving measures at plot level and the installation of water metering devices across the irrigation district, respectively. They are not willing to pay extra for obtaining information related to their water delivery earlier in time if this means that they will also have to pay earlier in the year for the water. Farmers with higher income and education levels who decide on their cropping pattern based on expected rainfall data are more interested in taking action than farmers whose cropping decisions are primarily based on last year's sales prices. The study shows that when aiming to design more effective sustainable water management strategies, accounting for farmers' needs and preferences, their age also has to be considered: younger farmers (40 years).FP7-FOOD-CT-2009-245159 project SIRRIMED funded by DG Research of the European Commissionproject AGRISERVI funded by the Spanish Ministry of Science, Innovation and Universities under the European Regional Development Fund (ERDF) [AGL2015-64411-R (MINECO/FEDER)

The values and benefits of environmental elements on housing rents

© 2016 Elsevier Ltd. The value provided by availability of environmental elements on human quality of urban life is difficult to assess and incorporate into urban planning and development. Researchers worldwide have seldom objectively factored these attributes into property pricing and associated decisions. This study contends that a better understanding of the effect of environmental elements requires systematic study of the relationship between objective and subjective measures of environmental phenomena and human responses. This paper summarizes the outcomes from applying Hedonic Pricing (HP) and Life Satisfaction (LS) methods - providing valuation in an increasingly expanding and privatized property Iranian market. A survey was carried out from 400 households that are more likely to make location choices and pay rent and property expenses in the city of Shiraz. The findings indicates that Shiraz neighbourhoods are likely to be characterized by deep environmental segregation. This study informs the decisions of policy makers and property developers regarding sales and purchases conversion, property development, urban nature conservation, and design of ecological green-space networks

Artificial reefs and marine protected areas: a study in willingness to pay to access Folkestone Marine Reserve, Barbados, West Indies

Artificial reefs in marine protected areas provide additional habitat for biodiversity viewing, and therefore may offer an innovative management solution for managing for coral reef recovery and resilience. Marine park user fees can generate revenue to help manage and maintain natural and artificial reefs. Using a stated preference survey, this study investigates the present consumer surplus associated with visitor use of a marine protected area in Barbados. Two hypothetical markets were presented to differentiate between respondents use values of either: (a) natural reefs within the marine reserve or (b) artificial reef habitat for recreational enhancement. Information was also collected on visitors’ perceptions of artificial reefs, reef material preferences and reef conservation awareness. From a sample of 250 visitors on snorkel trips, we estimate a mean willingness to pay of US$18.33 (median—US$15) for natural reef use and a mean value of US$17.58 (median—US$12.50) for artificial reef use. The number of marine species viewed, age of respondent, familiarity with the Folkestone Marine Reserve and level of environmental concern were statistically significant in influencing willingness to pay. Regression analyses indicate visitors are willing to pay a significant amount to view marine life, especially turtles. Our results suggest that user fees could provide a considerable source of income to aid reef conservation in Barbados. In addition, the substantial use value reported for artificial reefs indicates a reef substitution policy may be supported by visitors to the Folkestone Marine Reserve. We discuss our findings and highlight directions for future research that include the need to collect data to establish visitors’ non-use values to fund reef management

Tourism economics research: A review and assessment

This paper aims to provide the most up-to-date survey of tourism economics research and to summarise the key trends in its recent development. Particular attention is paid to the research progress made over the last decade in respect of approaches, methodological innovations, emerging topics, research gaps, and directions for future research. Remarkable but unbalanced developments have been observed across different sub-research areas in tourism economics. While neoclassical economics has contributed the most to the development of tourism economics, alternative schools of thought in economics have also emerged in advancing our understanding of tourism from different perspectives. As tourism studies are multi- and inter-disciplinary, integrating economics with other social science disciplines will further contribute to knowledge creation in tourism studies

Cultural values, deep mining operations and the use of surplus groundwater for towns, landscapes and jobs

Trade-offs involving land use change, cultural values, water resources and jobs are critically important to understand the opportunity cost of resource extraction. Stated preference techniques can be particularly useful in eliciting the non-market values expressed as trade-offs. This study assesses preferences over the management of groundwater released from deep mining operations in Western Australia. A discrete choice experiment is used to investigate the trade-offs Australians are prepared to make for remote economic, ecological and cultural goods against costs. The results suggest that there is heterogeneity of preferences as indicated by a three-class structure of a latent class model. One class supports the use of released groundwater across a range of economic, ecological and cultural uses modelled: extending town water supply, restoring rangeland habitat, creating jobs for Aboriginal Australians and preserving cultural waterholes. The smallest class supports all these uses except job creation and the final class only supports preserving cultural waterholes. These results illustrate public attitudes towards cultural values as well as wider environmental policy tensions between instrumental and intrinsic values