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Valuing Environmental Assets on Rural Lifestyle Properties

Published online by Cambridge University Press:  15 September 2016

Maksym Polyakov ,
David J. Pannell ,
Ram Pandit ,
Sorada Tapsuwan  and
Geoff Park
Maksym Polyakov*
Affiliation:
Centre for Environmental Economics and Policy, School of Agricultural and Resource Economics, University of Western Australia
David J. Pannell
Affiliation:
Centre for Environmental Economics and Policy, School of Agricultural and Resource Economics, University of Western Australia
Ram Pandit
Affiliation:
School of Agricultural and Resource Economics at the University of Western Australia
Sorada Tapsuwan
Affiliation:
CSIRO Ecosystem Science and an adjunct lecturer in the School of Agricultural and Resource Economics at the University of Western Australia
Geoff Park
Affiliation:
North Central Catchment Management Authority in Victoria, Australia
*
Corresponding Author: Maksym Polyakov ▪ Centre for Environmental Economics and Policy ▪ School of Agricultural and Resource Economics ▪ University of Western Australia ▪ Crawley, WA, 6009 ▪ Australia ▪ Phone +618.6488.5509 ▪ Email maksym.polyakov@uwa.edu.au.
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Abstract

Lifestyle landowners value land for its amenities and ecological characteristics and could play an important role in managing and conserving native vegetation in multifunctional rural landscapes. We quantify values of ecosystem services captured by owners of rural lifestyle properties in Victoria, Australia, using a spatial hedonic property price model. The value of ecosystem services provided by native vegetation is maximized when that vegetation occupies about 40 percent of the area of a lifestyle property. Since the current median proportion of native vegetation is 15 percent, most lifestyle landowners could benefit from increasing the area of native vegetation on their properties.

Keywords

ecosystem serviceslifestyle landownersnative vegetationspatial hedonic model
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 42 , Issue 1 , April 2013 , pp. 159 - 175
Copyright
Copyright © 2013 Northeastern Agricultural and Resource Economics Association 

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