Title: Hedonic analysis of farmland prices: the case of Aragon

Authors: Azucena Gracia, Luis Perez y Perez, Ana I. Sanjuan

Addresses: Department of Agrofood and Natural Resources Economics, Centre of Agrofood Research and Technology (CITA), Government of Aragon, Avda. Montanana, 930, 50059 Zaragoza, Spain. ' Department of Agrofood and Natural Resources Economics, Centre of Agrofood Research and Technology (CITA), Government of Aragon, Avda. Montanana, 930, 50059 Zaragoza, Spain. ' Department of Agrofood and Natural Resources Economics, Centre of Agrofood Research and Technology (CITA), Government of Aragon, Avda. Montanana, 930, 50059 Zaragoza, Spain

Abstract: A hedonic approach is used to study farmland prices in Aragon (Spain). Data over 450 transactions in 33 shires, in 2001 and 2002 are analysed. The marginal values for irrigated vs. non-irrigated land, the productive orientation and the differentiation of production through a Designation of Origin (D.O.) are used as explanatory variables. Socio-economic variables are also included. A Box-Cox transformation is specified to get the most appropriate functional form. The results indicate that water availability, the crop orientation, and the eligibility within a D.O. are the key factors affecting farmland prices, while the social environment and infrastructure has a minor impact.

Keywords: hedonic approach; land prices; Box-Cox transformation; Spain; farmland prices; agriculture; water availability; crop orientation; designation of origin.

DOI: 10.1504/IJARGE.2007.012145

International Journal of Agricultural Resources, Governance and Ecology, 2007 Vol.6 No.1, pp.96 - 110

Published online: 24 Jan 2007 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article