Does a farmland zoning program impact farm income: empirical evidence from farm households in Taiwan
Journal
European Review of Agricultural Economics
Journal Volume
47
Journal Issue
5
Pages
1621-1643
Date Issued
2020
Author(s)
Lin T.-C.
Abstract
Does farmland zoning affect farm income, and why? This study addresses these questions using a case study in Taiwan. We use a unique farmland-level dataset and apply the regression discontinuity design to quantify the effects of zoning on farm income. We find that the zoning program decreases farm income. The programme effects are heterogeneous, as they are more pronounced for farms in the higher percentiles of the farm income distribution. Moreover, a larger effect is found for elderly farm operators. Concerning the mechanism, we argue that the zoning program generated an optional benefit or wealth effect for eligible farms. This wealth effect then reallocates family labour to off-farm jobs. Consequently, the zoning program reduces income from farming. ? 2020 Oxford University Press and Foundation for the European Review of Agricultural Economics 2020; all rights reserved. For permissions, please e-mail: journals.permissions@oup.com.
Subjects
agricultural development; agricultural economics; agricultural ecosystem; agricultural land; empirical analysis; household structure; zoning system; Taiwan
Other Subjects
agricultural development; agricultural economics; agricultural ecosystem; agricultural land; empirical analysis; household structure; zoning system; Taiwan
Type
journal article