Valuation of land use in the Netherlands and British Columbia: a spatial hedonic GIS-based approach

The main reason for government intervention in land markets is market failure. Open space is a non-market output or externality of farmland and, although it might be important to people, there is no actual market for the good as such. The Netherlands and the Province of British Columbia in Canada both experience similar problems of expanding cities and pressure on open space, and they both use zoning to regulate land use and its externalities. The objective of this research is to evaluate the effect of zoning on the preservation of open space in the urban-rural fringe and to quantify the externalities that different types of land use impose on residential properties