The value of green belt land

This paper estimates the value of green belt land by assessing its output: agricultural; amenity; recreational; and savings in costs, by restricting the size of urban areas. These outputs are valued in social terms by the application of welfare economics. Some types of agriculture are shown to impose net social cost rather than benefits. Hedonic price models and contingent valuation are used to assess amenity benefits which are revealed as the most important justification for green belts. These benefits are set against the opportunity cost of the land in terms of foregone housing and industrial development. Uncertainty and irreversibility of a land-use change, from green belt, suggests that the benefits of housing or industry should substantially exceed the value of green belt land before a land-use change is sanctioned.