Evaluation of the Contribution of Farmland Attributes to the Total Benefit from Its Contamination Remediation: Evidence from Taiwan

Abstract

This study fills the gap in the existing literature by developing a two-stage quantile spatial Durbin model to evaluate the benefit from the cancellation of controlled contaminated farmlands. The results of monetary benefit are to identify the contribution of farmland attributed to the change in the total benefit resulting from the cancellation of contaminated farmlands. The results show that the significant impacts are the attributes resulting from the size of the transacted farmland, the distance between the transacted farmland and the main traffic artery, and the price of the construction site where the transacted farmlands are located. The results indicate that for every 1000 square meter increase in farmland size, the farmland price increases by about 45–105% in the non-agricultural planning zone, the Taoyuan Aerotropolis life circle, and decreases by about 81–131% in the agricultural planning zones. Moreover, for the price quantiles of 50% and above, the total benefit from the announcement of contamination cancellation to the ensuing transaction is reflected by an increase in the transaction price of 1.67–12.98% of the total benefit for non-agricultural Taoyuan Aerotropolis life circle zoning. By contrast, the total benefit from the same action taken for the other three agricultural development life circles is reflected by a reduction in the transaction price of 1.89–134.89%. These results indicate that the cancellation of highly priced contaminated farmlands is not anticipated if they are planned for agricultural purposes.