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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/19052

Title: Heterogeneous impact of soil contamination on farmland prices in the Belgian Campine region: Evidence from unconditional quantile regressions
Authors: Peeters, Ludo
Schreurs, Eloi
Van Passel, Steven
Issue Date: 2017
Citation: ENVIRONMENTAL & RESOURCE ECONOMICS, 66 (1), p. 135-168
Abstract: We estimate a hedonic-pricing model using geo-coded farmland-transaction data from the Campine region, situated in the north-east of Belgium. Unlike previous hedonic studies, we use the method of unconditional quantile regression (Firpo, Fortin, and Lemieux 2009). An important advantage of this new method over the traditional conditional quantile regression (Koenker and Bassett 1978) is that it allows for the estimation of potentially heterogeneous effects of cadmium pollution along the entire (unconditional) distribution of farmland prices. Using a threshold specification of the hedonic-pricing model, we find evidence of a U-shaped valuation pattern, where cadmium pollution of the soil has a negative and significant impact on prices only in the middle range of the distribution, insofar as cadmium concentrations are above the regulatory standard of 2 parts per million for agricultural land. Results obtained from a probit model to classify land plots into different price segments further suggest that the heterogeneous impact of soil pollution on price can be directly related to the variety of amenities that farmland provides.
Notes: Peeters, L (reprint author), Hasselt Univ, Fac Business Econ, Martelarenlaan 42, B-3500 Hasselt, Belgium. ludo.peeters@uhasselt.be; eloi.schreurs@gmail.com; steven.vanpassel@uhasselt.be
URI: http://hdl.handle.net/1942/19052
DOI: 10.1007/s10640-015-9945-6
ISI #: 000391511800007
ISSN: 0924-6460
Category: A1
Type: Journal Contribution
Validation: vabb, 2017
Appears in Collections: Research publications

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