Multilevel Analysis of the Pressure of Agricultural Land Conversion, Degree of Urbanization and Agricultural Land Prices in Taiwan

Abstract

In 2000, to efficiently implement land-use policies, the Taiwanese government amended the Agricultural Development Act by easing restrictions on agricultural land purchases. As a result of increasing land development and investment needs, agricultural land prices have surged. This study aims to examine whether agricultural land prices in Pingtung County are affected by land control policy measures, the pressure of agricultural land conversion and the degree of urbanization. A multilevel analysis approach was used to analyze land price differences in townships in Pingtung County. The estimation results derived from the null model indicated significant differences between the mean land price in each administrative division. Specifically, the ratio of agricultural land prices affected by differences in Level 2 township-related factors was 21.8%, while the ratio of those affected by differences in Level 1 land-related factors was 78.2%. An empirical intercepts-and-slopes-as-outcomes regression model demonstrated that Level 2 township-related factors, such as the pressure of agricultural land conversion and the degree of urbanization, had cross-level, direct and positive impacts on agricultural land prices; while Level 1 land-related factors, such as lot size control measures on farmhouse construction and land-use zoning, had positive and significant impacts on agricultural land prices.

Green Payment Programs and Farmland Prices—An Empirical Investigation

“…These results are consistent with prior research demonstrating that government support programs in agriculture are capitalized at higher rates for farmland located further away from metropolitan areas [23]. Rural farmland is more often dedicated to agriculture because urban farmland can be used for non-agricultural purposes such as illegal manufacturing factories or real estate investments in Taiwan [22,29]. These non-agricultural purposes provide higher economic returns from farmland in comparison to agriculture.…”