Theoretical Foundation of Agricultural Land Price and Agent-Based Models: A Literature Review
Öz
This paper provides a systematic review of theoretical approaches to agricultural land valuation and land rental market mechanisms in agricultural policy-oriented agent-based models (ABMs). Four valuation methodologies are examined: the Net Present Value Model, the Hedonic Price Model, the Shadow Price Approach, and the Willingness to Pay/Accept framework. A systematic review and harmonized elasticity analysis of 25 hedonic price studies across 17 countries, in which coefficients from heterogeneous hedonic models are converted into comparable elasticity measures using reported sample means, identifies lot size, soil quality, and distance to town as the most frequently significant determinants of farmland values. The computed elasticities indicate that a 1% increase in soil quality produces an average 0.214% increase in farmland price. The comparative analysis of five ABMs reveals that all current models are restricted to land rental operations, with none permitting purchase and sale transactions. The review identifies a gap in the integration of hedonic land characteristics into ABM price formation mechanisms, as most models rely on shadow prices adjusted for transportation costs. The findings highlight the need for incorporating land sales markets and hedonic attributes into future agent-based land market simulations.
Anahtar Kelimeler
Farmland Price, Hedonic Price Model, Land Price in ABM
Destekleyen Kurum
European Union Horizon 2020 Research and Innovation Programme (Grant Agreement No. 816078 – AGRICORE Project)
Proje Numarası
Avrupa Birliği Horizon 2020 Araştırma ve Yenilik Programı kapsamında 816078 numaralı hibe anlaşmasıyla finanse edilen AGRICORE projesinin D5.2 numaralı raporu
Etik Beyan
This study does not require ethics committee approval as it is a review article based entirely on published literature and does not involve any primary data collection from human or animal subjects.
Kaynakça
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