Valuing the soil natural capital: a New Zealand case study

Inherent characteristics of soil and land valuation data are used to examine the relationship between soil characteristics and rural farmland values to value soil natural capital in the 6000 [km.sup.2] Manawatu catchment in New Zealand. The study applies a widely used economic valuation method to determine whether the value of inherent characteristics of soils is reflected in land values. We find empirical evidence that the characteristics used to describe soil natural capital stock, e.g. gravel class, drainage class, potential rooting depth, and profile available water, are reflected in rural land values. Moreover, we find that these characteristics of soil stocks do not behave simply as independent variables but that there are complex relationships between them influencing their value. Additional keywords: hedonic prices, natural capital, rural land value, soil characteristics, value of soil.
Introduction The concept of natural capital has evolved in recognition of the increased human influence and reliance on ecosystem goods and services (Crossman and Bryan 2009). Natural capital is commonly [...]