Study On Non-market Valuation Theories, Methods Of Farmland And Application

Having reviewed the domestic literature in more than 10 years, we acquire the progress of theories and applications in farmland valuation in China. Based on the characteristics, functions and conception of farmland, we reconsider the limitations of traditional value theories. By reflecting the basic value conception, we bring forward a new system of farmland valuation. Having systematically discussed foreign countries' main non-market valuation methods, we select an appropriated method, which is CVM, to appraisal the non-market value of farmland in Wuhan city. In the last chapter, we verify the reliability of CVM in our country.This paper can be divided into seven parts, which are provided as follows:The first part of this paper briefly introduces the significance and basis of research, as long as major new ideas of the paper.In the second part, we reconsider domestic research progress in farmland valuation theories, methods and practice achievements. This part expands in four aspects, which are value theories; disagreements on land value; controversy about farmland value and categories of farmland valuation method.In the third part, after reviewing the conception, functions and characteristics of farmland, we ponder the traditional value theories, which are the theory of labor value and the theory of utility value. Using basic conception of resource and environmental economics and starting from Ricardo's land rent theory, we put forth a model to express the total economic value of farmland.From the forth part to the sixth, we discuss major non-mark valuation methods, which are CVM, HPM, TCM, according to the sequence of economic theory, operating procedure, latent problems and current research fronts. At the final parts of each chapter, we address the validity and reliability of every method in our country.CVM belongs to stated preference valuation method. Researchers establish a fictitious market for non-market goods or services, in which participants are told to express their max WPT or minimal WTA. The major characteristic or advantage of CVM is that it's not only suitable for market valuation but also for non-market valuation. CVM is the most flexible valuation method and researchers can make a choice of the cost and complexity of CVM according to the aim or object of valuation.HPM belongs to revealed preference valuation method. The non-market goods or services are bounded in real estate commodities. HPM can only be used in use valuation.It has many limitations and is difficult to use. For example, the real estate market should be flourishing, the judgments of market clear point must, be accurate and the scope of market and choice of function ought to be appropriate. Generally speaking, it is not an easy task to utilize this method.TCM belongs to revealed preference valuation method too, and this method can be used in use value assessment. In this method, TCM regards travel cost as the proxy for non-market goods and services. The primary merit of TCM is its reliability, which means valuation results of TCM can be easily accepted by ordinary people. But how to classify the cost and how to evaluate time opportunity cost are hard nuts for researchers. Those kinds of things must be discussed further.In the seventh part, we select CVM as valuation method to assess Wuhan farmland non-market value. Obeying the principles provided by NOAA and experience, lessons from foreign countries, together with domestic and city concrete situations, we devise the questionnaire and modify the classic CVM model. We appraise the non-market value by dividing the whole city into two parts: urban area and rural area. At the end of this chapter, we review shortcomings of this valuation and discuss some issues for further research.