7 Land, soil resources, and agriculture

• The allocation of agricultural land between different annual crops: A review the production possibility frontier (concave case)

  A) more expensive

  B) watermelon

  C) corn

  
• The allocation of land vs distance to center

  A) suballocations

  
• Shifters of the benefits of alternative land uses

  • Urban Land (externalities need to be costed also)
  • Residence
  • Industry
  • Transport
  • Amenities
  • Agricultural Land (externalities need to be costed also)
  • Technological change
  • Demand changes
  • Supply changes
  • Transport
  • Wilderness (undervalued; non-market values)
  • Recreation preferences
  • Transport
• HOW WOULD RELATIVE LAND TAXES SHIFT LAND-USE?

  • Higher land taxes in urban areas can encourage more efficient use of urban land and discourage urban sprawl.
  • Higher land taxes in rural areas may promote denser development in urban centers and protect agricultural or natural land from excessive development.
  • Relative land taxes can incentivize land-use decisions towards more sustainable and efficient outcomes based on the taxation structure.
• Property rights

  • Absolute versus constrained property rights
  • Ownership versus tenured rights
  • Perpetual, transferable
  • Limited usufruct or stewardship rights, fixed time for use
  • Constrained property rights
  • Area limits (Land Reform)
  • Nature of use
  • Minimum value
  • Zoning
  • Technological specs
  • Transferability
  • Conservation easements, Trusts, Wetland Banking, and Biodiversity Offsets
• Property rights

  • Urban land has special requirements and various property rights arrangements
  • Residential
  • Industrial
  • Transport, storage
  • Recreational parks
  • Government center
  • Agricultural Land (externalities need to be costed also)
  • Technological change
  • Demand changes
  • Supply changes
  • Transport
  • Wilderness (undervalued; non-market values)
  • Recreation preferences
  • Transport, infrastructure, amenities
• The Market for Food

  How much would rising prices Stimulate supply responses?

  • If producers have the capacity to increase production quickly rising prices will stimulate supply responses
  • If resources are abundant and accessible, producers will respond more readily
  • Competition and regulatory constraints can influence the speed/magnitude of supply responses

  How about demand?

  • Decrease in demand as consumers seek alternatives/reduce consumption
  • Inelastic goods may see limited demand response
  • Consumer preferences, income levels, and availability of substitutes also influence demand responses

  
• The Cobweb Model

  Explain

  
• Agricultural production function analysis

  A) area of land

  B) Original or traditional

  C) Ecological

  D) temp, water, wind, pollinators

  E) PxQ – c (L,K,t)

  F) temperature, water, wind, and pollinators

  
• Fill the table with examples of land resources values

  Urban Land

  • Direct:
  • Rental income/sale proceeds from commercial properties.
  • Indirect
  • Enhanced property values due to nearby amenities like parks or schools
  • Improved air quality and health benefits from urban green spaces
  • Option
  • Potential future use or development of land
  • Existence
  • Preservation of historical sites or landmarks
  • Altruism
  • Donations or support for urban conservation projects
  • Bequest
  • Intergenerational equity considerations in land use planning

  
• Intergenerational equity considerations in land use planning

  Agricultural Land

  • Direct
  • Crop yields
  • Livestock production and grazing.
  • Indirect
  • Pollination, soil fertility, and water regulation
  • Employment and supply chains
  • Option
  • Potential future use like urbanization or renewable energy projects
  • Preserving for future food security needs.
  • Existence
  • Cultural and heritage significance
  • Preservation of traditional farming practices
  • Altruism
  • Support for sustainable farming practices
  • Donations or support for education and research
  • Bequest
  • Passing on agricultural land to future generation