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Abstract
The objective of this paper is to compare land use models based on three different
proxies for agricultural land rent: farmers’ revenues; land price and shadow price
of land derived from a mathematical programming model. We estimate a land use
shares model of France at the scale of a homogeneous grid (8 km x 8 km). We
consider five land use classes: (1) agriculture, (2) pasture, (3) forest, (4) urban and
(5) other uses. We investigate the determinants of the shares of land in alternative
uses using economic, physical and demographic explanatory variables. Data on land
use is derived from the remote sensing database Corine Land Cover. We model
spatial autocorrelation between grid cells and compare the prediction accuracy as
well as the estimated elasticities between different model specifications. Our results
show that the three rent proxies give similar results in terms of prediction quality
of different models. Our results also show that including spatial autocorrelation in
land use models improve the quality of prediction (RMSE indicators). One of our
econometric land use models is used to simulate the effects of a nitrogen tax as well as to project land use changes in France under two IPCC climate scenarios.