scholarly journals Metodyczne aspekty wyceny dóbr publicznych na obszarach wiejskich: koncepcja waloryzacji endogenicznej = Methodical aspects of public goods valuation in rural areas: the concept of endogenous valuation

2018 ◽  
Vol 52 ◽  
pp. 7-21 ◽  
Author(s):  
Bazyli Czyżewski ◽  
Anna Matuszczak ◽  
Grzegorz Przekota
Keyword(s):  
Public Goods ◽  
Rural Areas ◽  
Hedonic Pricing ◽  
Model Specification ◽  
Exogenous Variables ◽  
Economic Surplus ◽  
New Approach ◽  
Specification Errors ◽  
Valuation Method ◽  
Specification Bias

The aim of the study is to create a conceptual framework for the valuation of the endogenous influence of public goods in rural areas using the new approach: the economic surplus valuation method (ESV), which implements the concept of producer and consumer rent. A distinctive feature of the ESV, compared to other market-based valuation methods is the assumption that public goods exert an endogenous impact upon resources and their productivity, but do not act in the model as exogenous variables (as it is in the case of hedonic pricing methods; the HPM). The authors’ approach limits the issues related to the specification bias within the HPM. Moreover, this manner reduces the problems associated with model specification errors in the HPM. The authors argue that ignoring the endogenous impact of public goods on resources and their productivity can lead to distorted results.

ENDOGENOUS VALUE OF PUBLIC GOODS IN RURAL AREAS: THE CASE OF WEST POME RANIA REGION

2018 ◽  
Vol XX (5) ◽  
pp. 48-54
Author(s):  
Bazyli Czyżewski ◽  
Anna Matuszczak ◽  
Agnieszka Brelik
Keyword(s):  
Public Goods ◽  
Rural Areas ◽  
Economic Rent ◽  
Exogenous Variables ◽  
New Approach ◽  
Valuation Method ◽  
Marginal Effects

The aim of the paper was to test a new approach to the valuation of public goods in rural areas referred to as the “Economic Rent Valuation Method” (ERV ). The authors use the concept of producer and consumer rent. The assumption assumes that public goods exert an endogenous influence on resources and their productivity, but do not appear in the model as exogenous variables. The authors test this method on the basis of an examination of public goods as endogenous determinants of income from agrotourism of West Pomerania region in Poland. The endogenous influence of environmental and cultural public goods was confirmed, which increased the marginal effects of the supply variables and weakened the effects of demand factors.

scholarly journals PAYMENTS FOR PUBLIC GOODS UNDER THE COMMON AGRICULTURAL POLICY VERSUS MARKET FAILURES

2018 ◽  
Author(s):  
Bazyli CZYŻEWSKI ◽  
Sebastian STĘPIEŃ ◽  
Jan POLCYN
Keyword(s):  
Public Goods ◽  
Agricultural Policy ◽  
Rural Areas ◽  
Common Agricultural Policy ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Developmental Model ◽  
Market Failures ◽  
Economic Surplus ◽  
The Eu

In the reality of the marketplace, a situation often arises where an economic surplus (rent) achieved by agricultural producers is partly taken over by related non-agricultural sectors. In this sense the category of economic rent embraces market failures related to such factors as price flexibility, and thus represents an effect of the misallocation of resources in the agricultural sector. The question therefore arises of whether there exists a developmental model of agriculture in which such market failures would be reduced. Apparently the only coherent response to this need is action taken under the paradigm of sustainable agriculture. This type of model for the sector’s functioning is supported by the objectives of the European Union’s Common Agricultural Policy (CAP), including through support for the supply of public goods in rural areas. This article addresses the question of whether CAP payments for public goods are a desirable systemic solution serving to reduce market failures. It is hypothesised that the financing of activity relating to the supply of public goods lessens the negative impact of the “market treadmill”, since it reduces the unexpected outflows of economic surplus away from farms, caused by agricultural prices. To verify the hypothesis, a panel regression analysis was performed on three sets: the EU-15 countries, the EU-12 countries, and – within Poland – subsectors of farms from six standard output classes. The analysis covered the years 2004–2012. The results of the computations provided confirmation of the hypothesis. It may be stated that an increase in the level of payments for public goods, as a percentage of total subsidies to agriculture, leads on average to a reduction in the drainage of economic rents through prices. It was also found that the financing of public goods under the CAP is more effective in reducing market failures in the EU-15 countries than in the EU-12.

scholarly journals Sustainable Geographical Changes in Rural Areas: Key Paths, Orientations and Limits

2021 ◽  
Vol 13 (4) ◽  
pp. 2059
Author(s):  
Angel Paniagua
Keyword(s):  
Rural Areas ◽  
Anglo Saxon ◽  
Rural Studies ◽  
New Approach ◽  
Rural Restructuring ◽  
Theoretical Approaches ◽  
Methodological Approaches ◽  
Social Environmental ◽  
The Individual ◽  
New Rurality

Rural differentiation processes have formed the backbone of rural studies. Owing to the strength of rural–urban and local–global relationships, the theoretical approaches to rural restructuring in the Anglo-Saxon world and new rurality in Latin America only have a limited capacity to explain contemporary global phenomena of rural spaces. Due to this, transverse theoretical and methodological approaches have emerged to explain social, environmental and spatial (rural) processes. Here, a new approach is proposed called the individual–global field, based on the individual–global binary category to substitute the traditional relevance of the locality–community–globality association This new approach tries to reinvigorate rural geography in a more flexible way, based on minor theory, to adapt to all the phenomena that can occur globally. In any case, various spatial planes are proposed, dominated by specific socioeconomic processes on which the rural individual would move.

scholarly journals Functional Form Model Specification: An Application to Hedonic Pricing

1995 ◽  
Vol 24 (2) ◽  
pp. 166-173 ◽  
Author(s):  
Jeff E. Brown ◽  
Don E. Ethridge
Keyword(s):  
Functional Form ◽  
Hedonic Pricing ◽  
Hedonic Model ◽  
Model Specification ◽  
Estimation Accuracy ◽  
Hedonic Price ◽  
Partial Regression ◽  
Cotton Price ◽  
Residuals Analysis ◽  
Form Model

A combination of conceptual analysis and empirical analysis—partial regression and residuals analysis—was used to derive an appropriate functional form hedonic price model. These procedures are illustrated in the derivation of a functional form hedonic model for an automated, econometric daily cotton price reporting system for the Texas-Oklahoma cotton market. Following conceptualization to deduce the general shapes of relationships, the appropriate specific functional form was found by testing particular attribute transformations identified from partial regression analysis. Minimizing structural errors across attribute levels and estimation accuracy were used in determining when an appropriate functional form for both implicit and explicit prices was found.

scholarly journals U.S. Consumer Demand for Plant-Based Milk Alternative Beverages: Hedonic Metric Augmented Barten’s Synthetic Model

Foods ◽  
2021 ◽  
Vol 10 (2) ◽  
pp. 265
Author(s):  
Tingyi Yang ◽  
Senarath Dharmasena
Keyword(s):  
Hedonic Pricing ◽  
Demand System ◽  
Soy Milk ◽  
Purchasing Behavior ◽  
New Approach ◽  
Hedonic Pricing Model ◽  
Inelastic Demand ◽  
Demand System Estimation ◽  
Nutritional Data ◽  
Conventional Milk

Consumers in the U.S. increasingly prefer plant-based milk alternative beverages (abbreviated “plant milk”) to conventional milk. This study is motivated by the need to take into consideration varied nutritional and qualitative attributes in plant milk to examine consumers’ purchasing behavior and estimate demand elasticities which are achieved by a new approach combing hedonic pricing model with Barten’s synthetic demand system. The method of estimation is enlightened from the common practice of companies differentiating their products in multidimensions in terms of attributes. A research dataset was uniquely created by associating the products’ purchase data from Nielsen Homescan dataset with exclusive first-hand nutritional data. Estimations began with creating a multidimensional hedonic attribute space based on the qualitative information of different types of plant milk and conventional milk available to consumers and then calculating the hedonic distances by Euclidean distance measurement to reparametrize Barten’s synthetic demand system. Estimation results showed that the highest own-price elasticity pertained to soy milk which was −0.25. Three plant milk types had inelastic demand. Soy milk exerted substituting effects on all types of conventional milk products and vice versa. Soy milk, rice milk and almond milk entertained complementary relationships between each other and four types of conventional milk were strong substitutes within the group.

scholarly journals Flood and Land Property Values

2016 ◽  
Vol 12 (5) ◽  
pp. 84 ◽  
Author(s):  
Nur Hafizah Ismail ◽  
Mohd Zaini Abd Karim ◽  
Bakti Hasan Basri
Keyword(s):  
Rural Areas ◽  
Property Values ◽  
Land Development ◽  
Hedonic Pricing ◽  
Land Values ◽  
Land Value ◽  
Industrial Land ◽  
Land Owners ◽  
Flood Impact ◽  
Urban And Rural Areas

<p class="a"><span lang="EN-US">Flood disaster has become a natural concern to the land owners where it raised a critical issue in term of land value depreciation. Previous studies have discussed the issue of potential decline in the value of land which are located on the flood-liable area. However, in Malaysia, current studies on flood impact are considered limited and do not focus on the effects of flood on land property. With the Hedonic Pricing Model (HPM) approach, we investigate the effect of flood on agricultural and industrial land property values in the urban and rural areas in Malaysia. The analysis indicates that the agricultural and industrial land values in the urban and rural areas have significantly decreased due to flood events. This study will benefit the land owners to understand the flood impact on land value and also the factors that contribute to the loss in the land value. It becomes the responsibility of the land owner to put the asset and property to its best use, given the presence of the flood. In addition, this study will help the policy maker to design and allocate land development efficiently in the urban or rural areas for agricultural and industrial project to ensure depreciation value of the land is minimized in the case of flood.</span></p>

scholarly journals Economic Valuation of Green Electricity Sources in Pakistan

2020 ◽  
Vol 10 (3) ◽  
pp. 47
Author(s):  
Muhammad-Jawad Iqbal ◽  
Abdul-Rahim Samad Abdul
Keyword(s):  
Willingness To Pay ◽  
Rural Areas ◽  
Contingent Valuation Method ◽  
Renewable Energy Sources ◽  
Economic Valuation ◽  
Green Electricity ◽  
The Sustainable Development ◽  
Valuation Method ◽  
Bid Price ◽  
The Government

Green electricity, which comes from renewable sources such as wind, hydro and solar, are well appreciated for their being environment friendly. The advantage of these sources are apparent in part of already natural environment. Moreover, this modern form of electricity also contributes in the poverty alleviation in developing countries, which is one of the sustainable development goals (SDG). The objective of this study is to explore electricity consumers’ willingness to pay for the sustainable energy by employing the contingent valuation method (CVM). The respondents were divided into two broad categories of urban and rural consumers. A total of 400 respondents from urban and 405 respondents from rural areas were selected for this study. The CVM calculated the overall price of green electricity for the improvement of environment through increasing the share of electricity from renewable energy sources. The widely used WTP measure double-bounded dichotomous was utilised to elicit the appropriate value of green electricity from the bid price. The results from the logit regressions showed that the respondents with high income and a higher level of education are willing to pay more for green electricity in both urban and rural models. However, results also revealed that the willingness to pay for green electricity is high in younger people than older people. The mean willingness to pay has found 0.33 cents per kWh in the urban model, while is 0.24 in the rural model. The results provided a guideline to the government to charge an appropriate surcharge from the consumers in order to enhance the share of green electricity in energy mix.

scholarly journals Proposing a Paradigm Shift in Rural Electrification Investments in Sub-Saharan Africa through Agriculture

2020 ◽  
Vol 12 (8) ◽  
pp. 3096 ◽  
Author(s):  
George Kyriakarakos ◽  
Athanasios T. Balafoutis ◽  
Dionysis Bochtis
Keyword(s):  
Rural Areas ◽  
Business Models ◽  
Sub Saharan Africa ◽  
Rural Electrification ◽  
Agricultural Cooperatives ◽  
New Approach ◽  
Sub Saharan ◽  
The Cost ◽  
Cross Subsidization

Almost one billion people in the world still do not have access to electricity. Most of them live in rural areas of the developing world. Access to electricity in the rural areas of Sub-Saharan Africa is only 28%, roughly 600 million people. The financing of rural electrification is challenging and, in order to accomplish higher private sector investments, new innovative business models have to be developed. In this paper, a new approach in the financing of microgrid electrification activities is proposed and investigated. In this approach, agriculture related businesses take the lead in the electrification activities of the surrounding communities. It is shown that the high cost of rural electrification can be met through the increased value of locally produced products, and cross-subsidization can take place in order to decrease the cost of household electrification. The approach is implemented in a case study in Rwanda, through which the possibility of local agricultural cooperatives leading electrification activities is demonstrated.

Sign in / Sign up

Export Citation Format

Share Document