ABSTRACT

Topography matters, of course, but so does location, especially since, in contrast to many other resources, land’s location is fixed. Conversion from one land use to another can occur whenever the underlying bid rent functions shift, and apparently in the United States they have shifted a great deal. Two problems associated with land use that are receiving a lot of current attention are sprawl and leapfrogging. Many of the costs associated with a particular land use may not accrue exclusively to the landowner, but will fall on the owner of nearby parcels. Many of the beneficial ecosystem goods and services associated with a particular land use may also not accrue exclusively to the landowner. Many governments use taxes on land as a significant source of revenue. In many developing countries, poverty may constrain choices to the extent that degradation of the land can dominate sustainable use, simply as a matter of survival.