scholarly journals UNDERSTANDING LAND IDLING AS A STRATEGIC BEHAVIOUR: A BRIEF NOTE USING THE REAL OPTIONS APPROACH

2016 ◽  
Vol 14 ◽  
Author(s):  
Haniza Khalid
Keyword(s):  
Real Options ◽  
Real Option ◽  
Agricultural Land ◽  
Market Price ◽  
Land Market ◽  
Market Prices ◽  
Strategic Behaviour ◽  
The Government ◽  
Agricultural Areas ◽  
Current Market Price

One possible explanation for land idling in a rapidly transforming economy can be found by looking at the value of the option to wait and hysteresis behaviour in the land market. If investors assume that the drop is temporary and that its long term prospects outweigh current holding losses, the market will observe some form of a zone of inactivity i.e., no selling and no additional buying. The fact that landowners elect to keep their valuable land underdeveloped for prolonged periods of time suggests that idled land is more flexible and valuable than what the current market price suggests. If the revenue from farming is insufficient to sustain the activity, land is left idle; although this operational decision is open to continuous revision. The numerical example shown in the paper shows that price of land can be substantially bolstered by the option to wait embedded in land. We argue that land market prices are based on more than the land’s total present value of its future income stream. In a transforming economy, the option to wait and change land-use are especially important to consider. Policy-wise, the government can discourage land idling by ensuring appropriate and suitable zoning of agricultural areas, strong adherence to the zoning conditions/plans as well as more far-sighted land conversion decisions. These efforts can go a long way to reduce the source and degree of uncertainty which is the most important cause of real option premium in land prices. Based on the nature and type of data available, future directions of research should emphasize on empirical testing of real options premium in sale prices of agricultural land.

UNDERSTANDING LAND IDLING AS A STRATEGIC BEHAVIOUR: A BRIEF NOTE USING THE REAL OPTIONS APPROACH

2016 ◽  
Vol 14 (5) ◽  
Author(s):  
Haniza Khalid
Keyword(s):  
Real Options ◽  
Real Option ◽  
Agricultural Land ◽  
Market Price ◽  
Land Market ◽  
Market Prices ◽  
Strategic Behaviour ◽  
The Government ◽  
Agricultural Areas ◽  
Current Market Price

One possible explanation for land idling in a rapidly transforming economy can be found by looking at the value of the option to wait and hysteresis behaviour in the land market. If investors assume that the drop is temporary and that its long term prospects outweigh current holding losses, the market will observe some form of a zone of inactivity i.e., no selling and no additional buying. The fact that landowners elect to keep their valuable land underdeveloped for prolonged periods of time suggests that idled land is more flexible and valuable than what the current market price suggests. If the revenue from farming is insufficient to sustain the activity, land is left idle; although this operational decision is open to continuous revision. The numerical example shown in the paper shows that price of land can be substantially bolstered by the option to wait embedded in land. We argue that land market prices are based on more than the land’s total present value of its future income stream. In a transforming economy, the option to wait and change land-use are especially important to consider. Policy-wise, the government can discourage land idling by ensuring appropriate and suitable zoning of agricultural areas, strong adherence to the zoning conditions/plans as well as more far-sighted land conversion decisions. These efforts can go a long way to reduce the source and degree of uncertainty which is the most important cause of real option premium in land prices. Based on the nature and type of data available, future directions of research should emphasize on empirical testing of real options premium in sale prices of agricultural land.

scholarly journals Assessing the Opportunity Cost of Carbon Stock Caused by Land-Use Changes in Taiwan

Land ◽  
2021 ◽  
Vol 10 (11) ◽  
pp. 1240
Author(s):  
Ming-Yun Chu ◽  
Wan-Yu Liu
Keyword(s):  
Climate Change ◽  
Land Use ◽  
Carbon Storage ◽  
Carbon Emissions ◽  
Opportunity Cost ◽  
Carbon Stock ◽  
Agricultural Land ◽  
Land Use Changes ◽  
Market Price ◽  
The Government

As compared with conventional approaches for reducing carbon emissions, the strategies of reducing emissions from deforestations and forest degradation (REDD) can greatly reduce costs. Hence, the United Nations Framework Convention on Climate Change regards the REDD strategies as a crucial approach to mitigate climate change. To respond to climate change, Taiwan passed the Greenhouse Gas Reduction and Management Act to control the emissions of greenhouse gases. In 2021, the Taiwan government has announced that it will achieve the carbon neutrality target by 2050. Accordingly, starting with focusing on the carbon sink, the REDD strategies have been considered a recognized and feasible strategy in Taiwan. This study analyzed the net present value and carbon storage for various land-use types to estimate the carbon stock and opportunity cost of land-use changes. When the change of agricultural land to artificial forests generated carbon stock, the opportunity cost of carbon stock was negative. Contrarily, restoring artificial forests (which refer to a kind of forest that is formed through artificial planting, cultivation, and conservation) to agricultural land would generate carbon emissions, but create additional income. Since the opportunity cost of carbon storage needs to be lower than the carbon market price so that landlords have incentives to conduct REDD+, the outcomes of this study can provide a reference for the government to set an appropriate subsidy or price for carbon sinks. It is suggested that the government should offer sufficient incentives to reforest collapsed land, and implement interventions, promote carbon trading policies, or regulate the development of agricultural land so as to maintain artificial broadleaf forests for increased carbon storage.

scholarly journals CONCEPT OF ECONOMICAL‐MATHEMATICAL MODEL OF LAND MARKET

2007 ◽  
Vol 13 (4) ◽  
pp. 333-340
Author(s):  
Gintautas Šatkauskas
Keyword(s):  
Mathematical Model ◽  
Input Parameter ◽  
Market Price ◽  
Research Process ◽  
Land Market ◽  
Market Prices ◽  
Noise Background ◽  
Input Parameters ◽  
Main Components ◽  
Sufficient Precision

Input parameters, ie factors defining the market price of agricultural‐purpose land, are interrelated very often by means of non‐linear ties. Strength of these ties is rather different and this limits usefulness of information in the research process of land market prices. Influence of input parameter changes to the input parameters in case when there are rather substantial changes may be determined in someone direction with a sufficient precision, whereas in other directions with comparatively small changes of input parameters this influence is difficult to be separated from the “noise” background. Taking into account the above‐listed circumstances, the concept of economical‐mathematical model of land market should be as follows: there is carried out re‐parameterisation of the process by means of introduction of new parameters in such a way that the new parameters are not interrelated, and the full process is evaluated at the minimal number of these parameters. These requirements are met by the main components of the input parameters. Then normalisation of the main components is carried out and dependencies on new parameters are determined. It is easier to interpret the dependencies obtained having reduced the number of input parameters and the higher the non‐linearity of interrelations of primary land market data, the greater effect of normalisation of input-parameter components. The results are compared with the valuations of experts.

Research on the Real Options in Investment Decision of Waterway Infrastructure Construction

2013 ◽  
Vol 734-737 ◽  
pp. 1617-1620
Author(s):  
Wei Jin
Keyword(s):  
Real Options ◽  
Carbon Dioxide Emissions ◽  
Capital Investment ◽  
Real Option ◽  
Investment Decision ◽  
Energy Utilization ◽  
Real Options Theory ◽  
The Real ◽  
The Government ◽  
Real Option Method

Developing the waterway infrastructure construction can improve the efficiency of energy utilization, reduce the energy consumption intensity and carbon dioxide emissions. Till the year 2020, China plan to complete 19,000 kilometers high grade channel. Construction of water infrastructure construction requires a large capital investment. However, the main financial source of funding the construction of transportation infrastructure at present in China is special financial allocation of the government. The unitary financing structure as well as the funding pressure has leaded to some serious financing problems. This paper applied the real options theory to the waterway infrastructure construction financing, analyzed the limitations of the NPV method and the advantages of real option method in investment decision of waterway infrastructure construction, and took an example to show its feasibility.

scholarly journals Official agricultural land price in the Slovak Republic

2008 ◽  
Vol 53 (No. 4) ◽  
pp. 184-188
Author(s):  
K. Bradáčová
Keyword(s):  
Property Rights ◽  
Agricultural Land ◽  
Slovak Republic ◽  
Supply And Demand ◽  
Income Effect ◽  
Land Market ◽  
Land Price ◽  
Market Prices ◽  
Land Prices ◽  
Land Site

As long as the land market in Slovakia is not completely developed and land market prices introduced, the officially assigned land prices are practically in use. At the present time, land prices should express the supply prices, which cover the income effect of the land site under the socially necessary costs. In this situation, for the temporary period, centrally assigned fixed land prices could represent the effective supply and demand prices in case they correspond to the mentioned conditions. At present, the official prices are used for fiscal purposes and the land property rights.

scholarly journals Digital control of the application efficiency of agricultural land and the involvement of retired territories into circulation

2021 ◽  
Vol 845 (1) ◽  
pp. 012153
Author(s):  
I G Golubev ◽  
A S Apatenko ◽  
N S Sevryugina ◽  
N I Kozhukhova
Keyword(s):  
Digital Image ◽  
Architectural Design ◽  
Agricultural Land ◽  
The State ◽  
Social Consequences ◽  
Unused Land ◽  
The Government ◽  
Control Knowledge ◽  
Structure Knowledge ◽  
Agricultural Areas

Abstract The economic instability of recent decades has various social consequences. One of which is the emergence of abandoned agricultural areas. Analytical studies have shown that geolocation, aimed at creating a digital image of agricultural areas, reveals exclusion zones. The government has set the task of developing programs to involve the agricultural turnover of unused land. It is proposed to carry out a system-architectural design of the target zoning of territories. The selection of the basic model within the architecture of the Database of agricultural lands in circulation is supplemented by a block of a digital image for recognizing resource opportunities. The problem of developing a formalized set of typed commands that structure knowledge about the state of territories and their functionality for expert programming systems is solved. The database is formed from declarative (factual), procedural, and control knowledge. To form the database, the state of unused agricultural land in the country was shown. A forecast was given by the Ministry of Agriculture of Russia for the involvement of fallow lands in the turnover by the end of 2030. The concept of the efficiency of involving unused agricultural land into circulation was presented. A mathematical description of the risks and a graphical presentation of ways to achieve the efficiency of returning unused land by a set of indicators of risk restrictions were given. The key advantage of the developed concept is the creation of a modular-type production infrastructure, which is modernized and filled according to the current needs of economic activity, which is flexible to changes in internal factors and does not require external resources.

scholarly journals Analysis of the Agricultural Land Market Transactions in Selected Regions of Slovakia in the Years 2007–2016

2018 ◽  
Vol 15 (2) ◽  
pp. 28-37
Author(s):  
Štefan Buday ◽  
Oľga Roháčiková ◽  
Ľubica Rumanovská
Keyword(s):  
Agricultural Land ◽  
Slovak Republic ◽  
Arable Land ◽  
Market Price ◽  
Land Market ◽  
Practice Research ◽  
Factors Affecting ◽  
Environmental Practice ◽  
Total Acreage ◽  
Total Sales

Abstract Despite the fact that the agricultural land market in Slovakia has developed in recent years, the overwhelming part of agricultural land in Slovakia is utilized in the form of rent. Only a small part is managed by the landowners themselves. It is therefore necessary to create mechanisms that would make it easier for both beginners and experienced farmers to acquire land as a basic factor of production. It is also important to create conditions enabling agricultural land to continue to serve its purposes and be acquired by persons who are competent for the management of the land and will manage it in compliance with the criteria of good agricultural and environmental practice. Research and analysis of factors affecting the land market and the rental market with agricultural land will also play an important role in these directions. During the evaluated period 2007–2016, we analyzed 244,374 land plots of agricultural land in twelve districts of the Slovak Republic (hereinafter referred also as SR). In the twelve districts of Slovakia, from 2007 to 2016, the average market price agricultural land without a distinction of size categories showed a fluctuating trend. Higher values of the average market price of agricultural land were recorded in the first years of the reviewed period. The highest value of the average market price was recorded in 2008 and amounted to 2.76 €.m−2. During the monitored period, from 2007 to 2011, the average market price had always values exceeding 1 €.m−2. In the reviewed twelve districts of Slovakia during the monitored period, the sold area of agricultural land represented acreage of 100,574 ha. From this acreage, the largest share (58.41%) scored arable land followed by permanent grassland with a share of 40.92%. Orchards marked the 0.43% share of the total acreage and the smallest share (only 0.23%) of the total sales was represented by vineyards.

scholarly journals Tata Kelola Informasi Peta Zona Nilai Tanah pada Kantor Pertanahan Kota Semarang

PERSPEKTIF ◽  
2021 ◽  
Vol 10 (2) ◽  
pp. 345-351
Author(s):  
Niken Susanawati ◽  
Retno Sunu Astuti ◽  
Budi Puspo Priyadi ◽  
Teuku Afrizal
Keyword(s):  
Public Participation ◽  
Market Price ◽  
Qualitative Approach ◽  
Easy Access ◽  
Land Market ◽  
Land Value ◽  
Access To Information ◽  
Market Prices ◽  
The Public ◽  
Balance Principle

The community doesn’t know the benefits and access to information on land value zone maps at the Semarang City Land Office yet, so the sale and purchase transactions that occur still use the Tax Object Selling Value (NJOP) whose value is below the land market price. The information on the prevailing land value zone map is also assessed that there are not in accordance with market prices, thus making the public file a complaint at the Semarang City Land Office. However, the lack of transparency provided made the community less aware of how the complaint procedure was, and the community was not even involved in determining the price on the applicable land value zone map. The purpose of this study was to determine how the management of land value zone map information at the Semarang City Land Office, which is considered to have not been done optimally. The theory used in this study refers to Vane Klasen's public participation and the transparency (policy, easy access, check and balance principle) proposed by Sedarmayanti. This study uses a qualitative approach and the researcher as a key instrument. The results show that the management of land value zone map information at the Semarang City Land Office has not been maximally implemented, that there is still a need to improve the socialization of benefits and the process of complaints about land value zone map information and public participation.  

scholarly journals THE AGRICULTURAL LAND MARKET IN BULGARIA - FACTORS AND PROSPECTS

2021 ◽  
Author(s):  
Mariya Stanimirova ◽  
Keyword(s):  
Agricultural Land ◽  
Market Price ◽  
European Countries ◽  
Land Market ◽  
Land Rent ◽  
Factors Influencing ◽  
Main Factors ◽  
The Impact

The report analyses the impact of the main factors influencing the market price of land in Bulgaria for the period 2000-2018. As a result of the analysis, it is summarized that the change in the price of land is mainly associated with the change in the land rent paid in the country. The price of agricultural land in the country is significantly lower than in a number of European countries, but this is not the case for the land rent paid, which is close to the European average.

scholarly journals PRAKTIK POLITIK TATA RUANG DI KABUPATEN TUBAN DALAM PROSES INDUSTRIALISASI

2021 ◽  
Vol 7 (1) ◽  
pp. 40
Author(s):  
Bayu Priambodo ◽  
Muhammad Chabibi
Keyword(s):  
Spatial Planning ◽  
Agricultural Land ◽  
Planning Process ◽  
Point Of View ◽  
Tourist Attractions ◽  
Interview Method ◽  
The Government ◽  
Data Collection Technique ◽  
Agricultural Areas ◽  
Research Show

Spatial planning has only been seen as an effort to meet development growth and only focuses on economic development. However spatial planning should not only focus on the economic sector but should also pay attention to other crucial sectors. This indicates that it does not take into account the zoning and purpose of spatialisation. This study attempts to look at ow the spatial planning process in Tuban Regency is undergoing a process of industrialization because many large factories are relocating to the Tuban area. The relocation of the factory to the Tuban area has increased the practice of spatial planning politics. The practice of spatial planning politics in Tuban Regency in this study is analyzed using Lefebvre's point of view which states that there are three parties to spatial planning. The method in this study is qualitative and the data collection technique uses the interview method. The results of this research show that the practice of space can be seen from how the government, the private sector and the community collaborate with each other to provide space so that industrialization can run. Many large factories are starting to be built in the Tuban area. The representation of space can be seen from how the government of Tuban Regency plans the arrangement so that there is an even distribution in each region. The northern and western regions are more focused on industrialization. The southern region is more focused on agricultural areas. the central region is focused on the center of government and trade and for the east it is focused on tourist attractions. The third is the representation space where this can be seen from how the government of Tuban Regency makes efforts to control the conversion of agricultural land for food. This is done because every year the agricultural land in Tuban Regency is decreasing so it needs to be maintained to maintain food security.

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