Changing land use intensity in Europe – Recent processes in selected case studies

In recent decades the intensification of agricultural production in many European countries has been one of the key components of land-use change. The impact of agricultural intensification varies according to national and local contexts and a greater understanding of the drivers of intensification will help to mitigate against its negative impacts and harness potential benefits. This paper analyses changes in land use intensity in six case studies in Europe. A total of 437 landowners were interviewed and their responses were analysed in relation to changes in land use intensity and agricultural production between 2001 and 2011. In the case studies in Western and Eastern Europe we observed stabilisation during the last decade, and no clear tendency of increase or decrease of land use intensity. The use of fertilizers and pesticides seems to have decreased in our cases in Western Europe, which is contrary to trends in Eastern Europe. Agricultural production remained stable in almost all cases, except for an increase in Austria and Romania which may indicate that the farming efficiency has increased. A statistical analysis showed a division between study areas in Romania and Austria (increasing land use intensity) versus those in the Netherlands, Denmark and Greece (decreasing). In the Mediterranean cases we observe a process where agriculture is becoming increasingly marginalised, at the same time as changes in function with regard to urbanisation and recreational land uses have taken place. Logistic regression highlighted the importance of farm size and farmer type in understanding changes in land use intensity. The dominant pattern of stabilisation which has occurred over the past 10 years may also partly be a result of effective EU and national environmental and agricultural policies, which are increasingly concerned with improving environmental conditions in rural areas.     

Pathways for a future cadastral system: A socio-technical approach

A vast array of trends and innovations, such as drones and person-to-person trust solutions, have been proposed to revolutionize the task of recording land and property rights. There is, however, a gap in current research regarding how to approach systematically the future(s) of cadastral systems. This paper introduces socio-technical transitions theory and multi-level perspective (MLP) framework in particular as a way to structure potential pathways for cadastral systems. The approach emphasizes the role of institutional rules of the game – the regulative, normative and cognitive institutional elements – in socio-technical transition processes. Using the Finnish cadastral system as a case study, we illustrate the approach by forming three alternative transition pathways: (1) a cadastral system under digital transformation, (2) differentiating urban and rural cadastral systems, and (3) a cadastral system facing new data management challenges. After describing each transition pathway with a narrative storyline, we reflect them in light of previous discourses of the cadastral domain. Thereby, the study provides new insights into discussions about the future of cadastral systems and land administration in general.     

Transformations of the Romanian agricultural paradigm under domestic economic policy reforms: An analysis during 1960–2011

The main aim of this paper is to investigate the transformations of the Romanian agricultural paradigm under the domestic economic policy reforms. An econometric approach is adopted by analyzing the evolution of Romanian agriculture between 1960 and 2011 from the perspective of its implications on residential land economy. This methodological choice relies on its high degree of applicability and its ability to reveal the massive transformation of the Romanian agricultural paradigm during the period under focus. Two regression models have been developed in the attempt to analyze the evolution of total value added and labor productivity in agriculture. The results obtained during the research confirm that Romanian agriculture exhibits determinant and significant elements able to trigger a massive change of paradigm.     

The role of public participation in encouraging changes in rural land use to reduce flood risk

Changes in rural land use to reduce flood risk are encouraged by governments in many countries, but they may face considerable opposition by land managers. Local participative processes are thought to help overcome opposition. This article presents an evaluation of an intensive participative process set up between land managers and governmental agencies following two severe floods in the transboundary Bowmont–Glen catchment in Scotland and England. A combination of interviews and documentary analysis is used. The research demonstrates that the participative process contributed to greater uptake of rural land use change and improved compliance with existing environmental policies. There were nevertheless low levels of social learning amongst participants. Two institutional designs for improving policy implementation are presented.     

Decision-making in incomplete markets with ambiguity—a case study of a gas field acquisition

We apply utility indifference pricing to solve a contingent claim problem, valuing a connected pair of gas fields where the underlying process is not standard Geometric Brownian Motion and the assumption of complete markets is not fulfilled. First, empirical data are often characterized by time-varying volatility and fat tails; therefore, we use Gaussian generalized autoregressive score (GAS) and GARCH models, extending them to Student’s t-GARCH and t-GAS. Second, an important risk (reservoir size) is not hedgeable. As a result, markets are incomplete which makes preference free pricing impossible and thus standard option pricing methodology inapplicable. Therefore, we parametrize the investor’s risk preference and use utility indifference pricing techniques. We use Least Squares Monte Carlo simulations as a dimension reduction technique in solving the resulting stochastic dynamic programming problems. Moreover, an investor often only has an approximate idea of the true probabilistic model underlying variables, making model ambiguity a relevant problem. We show empirically how model ambiguity affects project values, and importantly, how option values change as model ambiguity gets resolved in later phases of the projects. We show that traditional valuation approaches will consistently underestimate the value of project flexibility and in general lead to overly conservative investment decisions in the presence of time-dependent stochastic structures.     

Incomplete privatization of public rental housing in Hong Kong

The delineation of the land occupied by Public Rental Housing (PRH) is a contentious issue in worldwide debates over PRH privatization. Heated arguments hold that governments should retain the occupied land for mitigating inequalities that privatization might provoke. Dual-role policies arise concerning both efficiency and equality. This research seeks to decode actual consequences of such policies based on their implementation in Hong Kong, with a specific focus on the Tenants Purchase Scheme (TPS). Intended to enliven PRH within needy families, the TPS policy instead resulted in dormant resale of privatized PRH with adverse effects on target groups. Hypotheses on how the TPS policy has affected housing resale are developed based on property rights and searching theories and tested against empirical data. This research offers a theoretical basis for exploring solutions to the unanticipated aftermath of Hong Kong’s PRH privatization and provides information for other governments on implications of privatization strategies.     

Can investors of Chinese energy stocks benefit from diversification into commodity futures?

We attempt to evaluate the diversification potential of commodity futures for energy stocks in China. With a variety of copula functions and three risk-based dynamic measures, our results show that even though commodity futures are not helpful in improving the risk-adjusted returns of energy stocks, they can significantly reduce the volatilities and expected-shortfalls of the diversified portfolios. Such diversification benefits are much larger during large market downturns than during normal times. In particular, gold (copper) futures are the most (least) attractive in diversifying risks of energy stocks in most cases. The results also highlight that the non-linear dependence cannot be ignored when estimating the diversification benefits, and more various risk hedging strategies are expected for investors holding energy stocks, especially coal company stocks.     

Land-property markets and planning: A special case

Land use policy often intervenes in land-property markets. This raises a question that may have critical implications for land use policy: are these normal markets? This paper addresses that question: are land and property ordinary market goods, or do they lack some of the preconditions necessary for markets to work properly? We find that land-property has limited substitutability, due to the critical factor of location; qualified by location, land is limited and sometimes unique. These attributes make land and property investment assets risking speculation, warranting public intervention to mitigate negative social consequences. Land-property markets need market or administrative support to work, which planning provides through public and private agents. The paper reviews the different forms of planning and development control in land-property markets.     

Effects of land urbanization and land finance on carbon emissions: A panel data analysis for Chinese provinces

The rapid urbanization in China comes with several economic, social, and environmental issues, most of which are related to land use. This study contributes to research on the land–growth–environment nexus by investigating the effect of land urbanization and land finance on carbon emissions in China from 2004 to 2013 using the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. Results show that land finance and land urbanization significantly affect carbon emissions. The rate of land urbanization contributes to the reduction of carbon emissions; however, it has less impact compared with other determinants. The effect of land finance and land urbanization on carbon emissions indicates that a local government’s willingness to lease land for revenue aggravates carbon emissions. Economic growth and industrial structure also influence carbon emissions. Furthermore, the land requisition system and rural land conversion market should be enhanced through the guidance provided by the 13th Five-Year Plan (2016–2020) to promote the diversification of land transfer, fully consider regional differences, and establish a distinct policy focus that can contribute to emission reduction and land use.     

Adaptive society in a changing environment: Insight into the social resilience of a rural region of Taiwan

Taiwan has abundant biological resources that provide a quality living environment; however, industrial land use may change that environment through urban sprawl and thus have impacts on rural society. This study examined the experience of a Taiwanese rural region that has been exposed to industrial wastewater discharge specifying the relationship of industrial development to rural society and its role in policy. We addressed the societal adaptation to environmental degradation from risk perception perspectives about land use. Drawing on social vulnerability concept, semi-structured interviews were conducted in five communities that use irrigation water exposed to wastewater discharge. The interviews were designed using the Driver-Pressure-State-Impact-Response (DPSIR) causal framework to examine residents’ risk perceptions highlighting both built-environmental sensitivity (degradation) and residents’ adaptability (capacity). In addition, remote sensing technology was used to identify the urban sprawl that led to industrial land use and exposed the rural region to water pollution risks. As a result, we present a social resilience cycle to introduce adaptive responses underlining social amplification of risk. Both local knowledge of the locals (the Hakka people) and their societal response to environmental change reflect the role of culture in influencing land use policy. It is underlined that individual and community responses shape the social experience of risk and are related to both the ethnicity of the locals and the land use policy of the government. We indicated further that a large-scale survey that would really quantity this exploratory study to support land use decision-making is expected.