International Review of Environmental and Resource Economics > Vol 10 > Issue 3-4

The Informational Content of Land Price and its Relevance for Environmental Issues

Jean-Sauveur Ay, CESAER, INRA and AgroSup, France, , Laure Latruffe, SMART-LERECO, INRA and AgroCampus, France
Suggested Citation
Jean-Sauveur Ay and Laure Latruffe (2017), "The Informational Content of Land Price and its Relevance for Environmental Issues", International Review of Environmental and Resource Economics: Vol. 10: No. 3-4, pp 183-226.

Publication Date: 16 Aug 2017
© 2017 J.-S. Ay and L. Latruffe
Environmental Economics,  Pricing Models
Economic valuationnatural resourcemultidisciplinarypublic policies.


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In this article:
1 Introduction 
2 The Present Value Model and its Extensions 
3 Review of the Informational Content of the PVM 
4 Implication for Environmental Issues 
5 Conclusion 


As the support of human and natural activities, land is a resource of major interest both for environmental and socio-economic issues. Research aimed at improving land management and conservation has long recognized the need to integrate both issues, but a consensual and consistent framework is still lacking. We argue that land price could be one of the possible links here, as a consistent proxy for some of the multiple dimensions of values that people put on land resources. We present the elementary economic theory about land price, namely the present value model, and we review the abundant empirical literature using this classical theory to study the informational content of land price. We then propose a typology of this literature, highlighting its strengths and weaknesses, in order to guide future environmental research which aim at drawing out some socio-economically oriented policy recommendations.