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Capitalization of Open Spaces into Housing Values and the Residential Property Tax Revenue Impacts of Agricultural Easement Programs

Published online by Cambridge University Press:  15 September 2016

Jacqueline Geoghegan ,
Lori Lynch  and
Shawn Bucholtz
Jacqueline Geoghegan
Affiliation:
Department of Economics, Clark University, Worcester, MA
Lori Lynch
Affiliation:
Department of Agricultural and Resource Economics, University of Maryland
Shawn Bucholtz
Affiliation:
Department of Agricultural and Resource Economics, University of Maryland
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Abstract

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Using a unique spatial database, a hedonic model is developed to estimate the value to nearby residents of open space purchased through agricultural preservation programs in three Maryland counties. After correcting for endogeneity and spatial autocorrelation, the estimated coefficients are used to calculate the potential changes in housing values for a given change in neighborhood open space following an agricultural easement purchase. Then, using the current residential property tax for each parcel, the expected increase in county tax revenue is computed and this revenue is compared to the cost of preserving the lands.

Keywords

agricultural preservationhedonic modelsopen spacespatial econometrics
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 32 , Issue 1 , April 2003 , pp. 33 - 45
Copyright
Copyright © 2003 Northeastern Agricultural and Resource Economics Association 

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