Spatial spillovers in the implicit market price of soil erosion: an estimation using a spatio-temporal hedonic model

Caffera, Marcelo; Vásquez Lavín, Felipe; Rodríguez Anza, Daniel; Carrasco-Letelier, Leonidas; Hernández, José Ignacio; Buonomo, Mariela

dc.rights.license	Attribution-NonCommercial-NoDerivatives 4.0 Internacional	*
dc.contributor.author	Caffera, Marcelo
dc.contributor.author	Vásquez Lavín, Felipe
dc.contributor.author	Rodríguez Anza, Daniel
dc.contributor.author	Carrasco-Letelier, Leonidas
dc.contributor.author	Hernández, José Ignacio
dc.contributor.author	Buonomo, Mariela
dc.date.accessioned	2022-07-08T13:19:54Z
dc.date.available	2022-07-08T13:19:54Z
dc.date.issued	2019	es
dc.identifier.uri	https://hdl.handle.net/20.500.12806/1371
dc.description.abstract	We estimate the implicit market price of soil erosion, fitting a spatio-temporal hedonic price model using quarterly data of 3,563 agricultural farms traded in Uruguay between 2000 and 2014. A unique feature of our estimation is that we allow for possible spatial spillovers. We find evidence of a negative and statistically significant association between erosion and land values. A 1% increase in own topsoil loss due to own erosion is associated with a decrease of 0.22% in the per-hectare price of agricultural land (p-value: 0.013, 95% CI: -0.0039, -0.0005). This is equivalent to a decrease of 7.7 USD in the average price per hectare and USD 1,040 in the price of the average farm (134 hectares). This value increases to USD 1,277 when we add the average cross marginal effect of erosion in nearby farms. Our estimates are sensitive to our measure of erosion and our specification of the spatio-temporal weighting matrix. We also find evidence consistent with our hypothesis that farms entering a governmental erosion control plan sent a valuable signal to the market regarding soil management. An indicator of whether the farm has at least one parcel under the government erosion control plans is associated with a 29% increase in the farm´s per-hectare price (p-value: 0.000, 95% CI: 16.26%, 41.53%) higher than those with no parcel under these plans. The average total marginal effect (own plus cross effects) of the erosion control plans is 35.37% (p-value: 0.000, 95% CI: 20.33%, 50.40%).	es
dc.format.extent	36 p.	es
dc.format.mimetype	application/pdf	es
dc.language	eng	es
dc.publisher	Universidad de Montevideo, Facultad de Ciencias Empresariales y Economía, Departamento de Economía	es
dc.relation.ispartof	Documentos de trabajo del Departamento de Economía	es
dc.rights	Abierto	es
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/4.0/	*
dc.subject	Spatial spillovers	es
dc.subject	Spatio-temporal hedonic model	es
dc.subject	Soil erosion	es
dc.subject	Farmland values	es
dc.subject	Uruguay	es
dc.title	Spatial spillovers in the implicit market price of soil erosion: an estimation using a spatio-temporal hedonic model	es
dc.type	Documento de trabajo	es
dc.contributor.filiacion	Caffera, Marcelo. Universidad de Montevideo, Uruguay	es
dc.contributor.filiacion	Rodriguez Anza, Daniel. Universidad de Montevideo, Uruguay	es
dc.type.version	Publicada	es