Impact of climate risks on the agricultural land price in the Netherlands

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2024-08-07

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en

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Agriculture is one of the most important economic sectors, as it is expected to feed a global population projected to reach 10.4 billion by 2100. However, ongoing climate change is giving rise to various climate risks that will impact many economic sectors, particularly the Dutch agricultural sector. The Netherlands, a densely populated country, boasts one of the largest agricultural sectors in the world and some of the best soils for agricultural use. What is remarkable about the Dutch agricultural sector is the rising price of agricultural land, despite increasing climate risks. One would be expected these risks to lower land price, as shown by other international studies, especially considering the Netherlands’ geographical position in a Delta of three rivers, with much of the country situated below sea level. To investigate the impact of climate risks on agricultural land prices in the Netherlands, a literature review was conducted and a hedonic price model was applied. This research identified six climate risks for the investigation: extreme heat, extreme precipitation, extreme drought, flood risks, surface water shortage and salinization. What could be concluded from this study is that at present and using this method climate risks have a minimal to no influence on agricultural land prices in the Netherlands. Keywords: Agriculture land price, climate risks, hedonic price model

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Faculteit der Managementwetenschappen