Land development in Missouri has expanded in recent years. Data released by the 1997 National Resources Inventory (NRI) shows that 226,800 acres in Missouri were converted to developed land between 1992 and 1997. This acreage exceeds the 210,600 acres that were converted to developed uses in Missouri during the previous 10-year period (1982 to 1992). Of the developed acreage added between 1992 and 1997, 181,800 acres were in large urban and built-up areas. Ninety-six percent of the developed land was converted from forestland, cropland and pastureland. Land development is not evenly distributed across Missouri. The rural-urban interfaces are under the greatest development pressure. Agricultural land and forestland are prime areas for conversion to urban development because urban land generally has higher market value than agricultural land and forestland. Losses of agricultural land and forestland to urban development result in many environmental problems, such as water quality degradation, losses in wildlife habitat and flooding due to increased runoff. These externalities pose significant costs to society. The government could intervene to internalize the social costs of private land use decisions by implementing land use policies, such as zoning regulations and purchase of land development rights. Formulation of land use policies to internalize the social costs of land conversion requires better information regarding market values of alternative land uses and the magnitude of external social costs. Although land development accompanies economic growth, better understanding of the costs and benefits of land conversion would allow more sustainable development of land.
The overall objective of the proposed research is to develop a protocol that governmental agencies and environmental groups can use to estimate and analyze the costs and benefits of developing land versus maintaining land in agricultural and forest uses. Achievement of this objective is expected to result in better land use decisions in environmentally fragile areas of the rural-urban interfaces in Missouri. Specific objectives of the proposed research are:
The proposed research will be conducted in Dardenne Creek watershed in St. Charles County, Missouri. The watershed is well suited for studying competing land uses. Urban sprawl in the watershed has caused environmental problems, such as increased urban runoff, sedimentation and damage/loss in wildlife habitat. The Center for Agricultural, Resource and Environmental Systems (CARES) at the University of Missouri-Columbia has conducted several research projects in the watershed and county funded by the Greenway Network, Inc., University of Missouri Extension, the McKnight Foundation, EPA and NASA. The projects address environmental concerns, such as floodplain management, wetland losses and urban planning and development.
The market values of different lands will be evaluated using public land value records, recent land transaction data and land and property values from private sources. The hedonic pricing method (HPM) will be used to estimate market value of land use conversions. Specifically, the land value and transaction data and associated land use and characteristics will be used to estimate hedonic pricing functions for land in the watershed. The functions have land value as the dependent variable and land use and other land characteristics as independent variables. Differences in the market values due to land use conversion will be evaluated based on the land use coefficients of the hedonic pricing function. The model will evaluate impacts of selected environmental characteristics of land, such as soil type, topography, creek access and open space provided by the agricultural land and forestland, on land values.
Three different methods are used to estimate non-market values of the agricultural land and forestland in the watershed. The Contingent Valuation Method (CVM) will be used to estimate the existence values of both agricultural land and forestland in the watershed. Existence values are partially related to open space and environmental amenities, wildlife habitat, and availability of resources for future uses and/or future generations. The Travel Cost Method (TCM) will be used to estimate the recreational value of the creek and forestland in the watershed. Creek and forestland in the watershed contribute to recreational activities, such as hunting, fishing, boating and camping, by supporting healthy terrestrial and aquatic ecosystems. A user survey will be conducted to obtain information regarding the number of visits, travel costs, and social and economic characteristics of visitors. A travel cost demand function will be estimated using the number of visits as dependent variables, and travel costs and visitors’ social and economic characteristics as independent variables. A travel cost demand curve will be derived from the estimated demand function. Consumer surplus and the recreational values of forestland will be calculated from the demand curve. The Indirect Valuation Method (IVM) will be used to evaluate the economic values of ecosystem functions of forestland. Forestland provides many important ecosystem functions including water quality improvement, storm water and floodwater attenuation, and preservation of biodiversity and wildlife habitat. The proposed research will focus primarily on ecosystem functions related to sedimentation and surface runoff. The Hydrologic Simulation Program – Fortran (HSPF) model will be used to simulate sediment and runoff in the watershed with and without consideration of the ecosystem functions of forests. The economic values of ecosystem functions of forestland will be approximated by the costs of treating extra sediment and runoff with water retention ponds and dredging.
Estimating the total values of ecosystems is complex because it requires consideration of system boundaries, scale, thresholds and aggregation of component values. This same complexity applies to estimating and analyzing the costs and benefits of land use conversions. This project will develop a protocol that standardizes the procedures for defining problems, collecting data, developing survey instruments, administering surveys, and analyzing results. The protocol will include the procedures for systematically using estimated costs and benefits of land use conversions to improve land use decisions. The protocol will be simple and easy to use and will be reviewed by an advisory committee. A workshop will be conducted to train resource managers, state and local agency personnel, and interested citizen groups in how to use the protocol in conducting economic analysis of competing land uses in other areas of Missouri.
The Advisory Committee is an integral part of the research team. The role of the advisory committee is to: (1) to evaluate objectives, methods and procedures of the project, (2) to assist data collection, review preliminary results and monitor the progress of the project, and (3) to increase public awareness of non-market value of agricultural and forest land.
Principal Investigators: Zeyuan Qiu, Tony Prato and Gerry Boehm
Collaborators: Renee Cook and Perry Eckhardt
Funding Source: the Missouri Cooperative Agricultural Research Grants (MOCARG) program administered by the Missouri Soil and Water Districts Commission and the Missouri Department of Conservation
Funding Amount: $82,074
Project Duration: July 1, 2001 - June 30, 2003.
130 Mumford Hall, Columbia, MO 65211Tel: 573.882.7458 | Fax: 573.884.2199 Division of Applied Social Sciences College of Agriculture, Food and Natural Resources © 2009-2011 by Center for Applied Research and Environmental Systems
