Abstract
This chapter evaluates the impact of the land consolidation (LC) processes that have taken place in Asturias during the period 2001–2017. These processes have received European funds as they help to improve the economic activity in rural areas. In particular, the LC processes involve very localized public investments in infrastructures that favour accessibility and development not only in the local but also in adjacent areas. To evaluate the effect of LC processes on milk and beef production, we treat the parishes in Asturias as production units and estimate a set of multi-output distance functions. Our results indicate that LC contributes to increase parishes’ livestock production, although those processes not always are accompanied by an increase in the number of farms. We also find that the (indirect) effect from LC processes implemented in neighbouring parishes is positive and even more relevant than the (direct) effect on the local LC processes.
The authors would like to thank the financial support obtained from the Regional Government of the Principality of Asturias in conjunction with FEDER (Grant FC-15-GRUPIN14-048). This chapter was also supported by the Spanish Ministry of Economics, Industry and Competitiveness (Grant MINECO-18-ECO2017-85788-R).
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Notes
- 1.
The above two regulations can be found in the Asturias’ Official Bulletin (https://sede.asturias.es/portal/site/Asturias/menuitem.048b5a85ccf2cf40a9be6aff100000f7/?vgnextoid=c0c756a575acd010VgnVCM100000bb030a0aRCRD&i18n.http.lang=es&calendarioPqBopa=true)
- 2.
This is not the first time where input and output variables are used for the same purposes. For instance, the relative size of a particular industry is often given by either its value-added share or its labour share (see, e.g. Balk 2016).
- 3.
We do not take logs in z it as this indicator already takes values between zero and one, and changes in z it can be interpreted as rates of growth.
- 4.
If more than one LC-based variable is used, the equation (4) should be extended with the proper linear and quadratic terms (including interactions) associated with the new LC-based variables.
- 5.
Why we have added the “direct” label to this effect is explained below in this section.
- 6.
Notice again that W iLC t is a vector of three LC-based variables, e.g. W iLC t = (W iN t, W iA t, W ilnIH t).
- 7.
Halleck-Vega and Elhorst (2015) provide a comprehensive overview of the strengths and weaknesses of different spatial econometric model specifications in terms of spillover effects. Based on their overview, they advocate taking the SLX model as point of departure in case a well-founded theory indicating which model is most appropriate is lacking.
- 8.
A more comprehensive method to combine both effects relies on the following differential equation that requires computing the elasticity of lny 1it with respect to lnx it:
\( \frac{dlny_{1 it}}{dLC_{it}}=\frac{\partial {lny}_{1 it}}{\partial {LC}_{it}}+\frac{\partial {lny}_{1 it}}{\partial {lnx}_{it}}\cdotp \frac{\partial {lnx}_{it}}{\partial {LC}_{it}} \)
- 9.
- 10.
The livestock unit sometimes abbreviated as LU (or LSU) “is a reference unit which facilitates the aggregation of livestock from various groups of age as per convention, via the use of specific coefficients established initially on the basis of the nutritional or feed requirement of each type of animal”. This definition was obtained from Eurostat website (see https://ec.europa.eu/eurostat/statistics-explained/index.php/Glossary:Livestock_unit_(LSU)).
- 11.
While the farms are classified as beef farms when the beef livestock units exceed 2/3 of the total LU, the mix-oriented farms are those farms with beef and dairy livestock units less than 2/3 of the total LU.
- 12.
It also might capture an effect on farms’ structure if it is interacted with y 2it/y 1it.
- 13.
- 14.
Due to this cessation, the number of farms and the livestock numbers are zero at the end of the sample period in a few parishes.
- 15.
It is worth highlighting that the distribution of the direct effect is quite disperse, indicating that our DLCE estimates are rather inconclusive due to the presence of large negative and positive point estimates.
- 16.
The distant group includes parishes where the last LC process finished one decade ago or more. Otherwise, it is included in the recent group.
- 17.
The small (large) investment group includes parishes with less (more) investment per hectare than the sample average.
- 18.
The traditional (non-traditional) group includes parishes with more (less) z-ratio than the sample average.
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Appendix: Literature Review on Land Consolidation (LC)
Appendix: Literature Review on Land Consolidation (LC)
Paper | Objective | Sample | Methodology | Results |
---|---|---|---|---|
Burger (2001) | Analyse the agricultural transformation, land redistribution and land tenure and the role of agriculture in the Hungarian economy | 309 farms in 11 counties of Hungary in 1998 | Questionnaire | LC has taken place mainly by renting. Rented land increases with the increasing farm size |
Coelho et al. (2001) | Proposition of a model that incorporates methods for the evaluation of the performance of the agricultural system before and after the LC project | The model was applied to the Valenca LC in 1989, before project execution, and in 1995 after implementation | The model evaluates each effect of the project (land, irrigation and drainage and road reconstruction) on a technical and social basis and estimates its economic impacts | The results suggest that a multidisciplinary approach, supported by robust models, can be used as a reliable basis for the evaluation and decision- making process of LC projects |
Crecente et al. (2002) | Review the process of LC in Galicia analysing economic, social and environmental effects | Parishes with and without LC processes. Cases of two municipalities | Comparative analysis of consolidated and non-consolidated areas in Galicia | LC contributes to retaining farmland in agricultural use and improves the population evolution in rural areas, although there are changes in use from cropland to pasture land |
Vitikainen (2004) | Discuss the similarities and differences in the LC procedure in various European countries | Objectives and contents of LC in Finland, Germany, the Netherlands and Sweden | Comparison of the organization, objectives, legal procedure, costs and financing and the development of LC between countries | The demand for LC arises from the need for promoting the appropriate use of the land. There are differences in the objectives and procedures of LC between countries related to factors like historical trends, culture, tradition and legislation |
Wu et al. (2005) | Examine and measure the impact and cost-effectiveness of the comprehensive agricultural development program on Chinese agriculture | Data collected from a survey to 227 Chinese farm households | This paper uses a production function approach | The program has improved land quality and the productivity of household crop production, and overall has been cost-effective |
Lerman and Cimpoieş (2006) | Examine LC within of process of agrarian reform | Several surveys in Moldova, made in different years and previously published | Analysis of several surveys | LC leads to better economic performance. Land leasing is used as a market mechanism for consolidation |
Miranda et al. (2006) | Examine the geographic, agricultural, socio-economic and environmental effects of LC in Galicia since the 1950s | Databases related to 315 Galician municipalities and 3793 parishes. Data from 1129 LC processes related to the period 1950–2001 | Methodology drawn up by the European Union for evaluation of its socio-economic programs | LC has in general made a positive contribution to slowing rural depopulation |
Yu et al. (2010) | Identify and classify the ecological risks in LC. Develop a framework of the theory and method to assess the change of ecological risk degree before and after LC | A case study of a LC project in Chongyang County, Hubei Province, China | Analytical hierarchical processing (AHP) method to the data resources from the LC project in Southern China to allocate weightings to the indices of ecological risk (ER) and to set up an integrated index system for the ecological risk identification. This integrated index system encompasses the ecological risks with three factors (water, soil and biology) and 14 indices | The ER is reduced from 58.02 to 28.8 after LC and the degree of ecological risk is down from degree III to degree IV. The water ER is reduced from 21.53 to 6.16; its contribution to reduce the ecological risk is 53%. The reduced ERs of soil and biology are, respectively, 12.79 and 1.06; their contribution of ecological risk reduce is lower than water |
Hartvigsen (2014) | Study of land reform in 25 countries in Central and Eastern of Europe from 1989 and onwards and provide an overview of applied land reform approaches | Land reform approaches applied in 25 countries in Central and Eastern Europe from the Baltic and Central European countries in the West to Russia and the small Trans-Caucasus countries in the east, and to the Balkan countries in the south | With a basis in theory on land fragmentation, the linkage between land reform approaches and land fragmentation is explored | Land fragmentation is often hampering agricultural and rural development when both landownership and land use is highly fragmented |
Lisec et al. (2014) | Investigate the opinion of LC participants about LC | Responses to a questionnaire of 254 landowners from 3 areas of Slovenia in 2011 | Survey conducted on a sample of private landowners involved in selected LC projects | The active participation of landowners contributes to their comprehension of the aims and to their satisfaction with the results of the LC |
Zhang et al. (2014) | Identify the changes resulting from the LC implementation and to develop a parametric approach to assess the resource-environment effects | Case study of Tianmen LC project in Hubei Province of China | Use of indexes to assess the different effects of LC | LC causes positive and negative effects. Positive effects were demonstrated in agricultural production capacity and in its costs. The negative effects were expressed by the ecosystem services value, landscape diversity and human disturbance intensity |
Guo et al. (2015) | Identify and measure the effect of LC on the multifunctionality of cropland ecosystems | Analysis of county scale LC projects in the 31 provinces of China (period 2006–2012) | Set pair analysis methodology. Variable fuzzy sets analysis | LC have significantly improved the production function of cropland, driven investment in agriculture, promoted development of the rural agricultural economy, maintained food security and stability in the rural area. However, it also impaired rural ecological benefits in some provinces |
Wang et al. (2015) | Understand how LC affects landscape patterns and ecosystems investigating the ecosystem service value and the ecological connectivity in a consolidated area of Da’an City from 2008 to 2014 using a revised ecological connectivity index | Consolidated area of Da’an City from 2008 to 2014 (China) | Use an ecosystem service evaluation and a revised ecological connectivity index | LC has certain negative influences on the ecosystem services. LC could change the ecological connectivity as well as the land-use structure |
Hiironen and Riekkinen (2016) | Evaluate agricultural impacts and profitability of LC | 12 LC projects implemented in Finland | Standard statistical methods, production cost calculations and feasibility analyses | LC is an effective and feasible land management tool for the improvement of property structure. Due to the improvement of property structure the average production costs decrease 15% |
Paper | Objective | Sample | Methodology | Results |
Jiang et al. (2017) | Propose an assessment model to estimate the improvement of land productivity potential via LC | Region of Shenyang City (China) | Use of a system for assessing the cultivated land productivity potential before and after LC | The effect of the concentration is based on an increase of more than 20% in the potential productivity of the land |
Jin et al. (2017) | Evaluation of the effectiveness of LC policy | Detailed geospatial information for 5328 LC projects implemented between 2006 and 2010 in China | Generalized linear mixed model (GLMM) to predict project effectiveness incorporating selected biophysical, social-economic variables as fixed effects and province variables to model random effects | The overall effectiveness of LC in improving agricultural productivity is low. There are also clear regional differences |
Luo and Timothy (2017) | Evaluation of the performance of LC in terms of rural households’ levels of satisfaction in rural China | Data gathered via questionnaires in the regions of Hangzhou, Changsha and Guiyang (China) | Probit model | The overall satisfaction rate was 76.5%. Residents’ satisfaction with LC depends, among others, on farmers’ level of education, family size, level of agricultural mechanization and their participation in rural production cooperatives |
Demetriou (2018) | Present and discuss the development, implementation and evaluation of two different automated valuation models (AVMs) for a case study LC | Case study area in Cyprus | Estimation of two hedonic price models combined with a geographical information system (GIS) | The AVM is highly efficient compared to conventional land valuation methods and provides transparency |
Du et al. (2018) | Propose a straightforward method to assess agricultural productivity changes using remote sensing data | Moderate Resolution Imaging Spectroradiometer NDVI time series from 2001 to 2013 and data on LC projects completed in China in 2006 and 2007 | Two indexes were used to evaluate the effects of LC: the rate of change in the mean annual NDVI and the coefficient of variation of this variable before and after consolidation | 78.67% of projects in 2006 and 78.32% of those in 2007 proved effective at either improving or stabilizing productivity |
Dudzińska et al. (2018) | Assessment of the socio-economic effects of consolidations at the meso-level in rural areas | Polish communes in which both traditional and infrastructural consolidations had been implemented over an area of at least 15% of the commune’s area | The level of socio-economic development was assessed based on an indicator of the rate of changes, calculated as the difference between the levels of commune development indicator for the years 2004 and 2016 | Implementation of traditional consolidations of agricultural land is one of the factors contributing to an increase in the level of socio-economic development of rural areas |
Li et al. (2018) | Investigate the challenges in implementing LC in rural China and to pose policy implications for rural sustainability | LC project in a village community of Shandong Province (China) | Analysis and reflection on the process of LC | LC is needed to coordinate and improve the changing human-land relationship in rural China. It is needed an expanded rural land market. LC should be implemented by respecting local stakeholders’ willingness and request |
Nilsson (2018) | Examine the role of land use consolidation on agricultural productivity among smallholder farmers in Rwanda | Random sample of 1538 households across Rwanda of which 25 per cent participated in land use consolidation between 2010 and 2014 | Household-level data are used to estimate a fixed-effects model with matched control groups to mitigate selection bias | Positive association between land use consolidation and crop yields (among farms with landholdings greater than one hectare) |
Paper | Objective | Sample | Methodology | Results |
Shi et al. (2018) | Research on LC projects by integrating landscape pattern analysis with production, living, and ecological benefit assessments | Two municipal LC projects in China were selected for analysis | By an evaluation index system, the authors quantitatively estimate the dynamic changes in the production, life and ecological benefits of the two project areas | LC has directly or indirectly improved landscape ecological patterns. LC has improved the balanced distribution of cultivated land and the concentrated distribution of construction land in the project area |
Zeng et al. (2018) | Evaluate the impacts of LC on agricultural technical efficiency of producers | Data from a field survey executed during July 2010 and July 2016. A total of 900 producers were chosen randomly from 30 LC projects in the Jiangsu Province (China) | Stochastic frontier analysis production function | Land tenure transfer, land fragmentation, non-agricultural income and crop diversity have undergone significant changes after LC. The overall agricultural technical efficiency of producers had also increased considerably after LC |
Zhang and Zhang (2018) | Analyse the interference by human activities caused by LC engineering in terrestrial ecosystems | Analysis of a project area located in Mugong Village in Guanling County (China) | GIS technology, ecological values, landscape pattern indexes and an ecological risk evaluation were used to construct an ecological sensitivity evaluation index | The project area was divided into sensitivity zones according to the results that provide suggestions for future land management decisions |
Colombo and Perujo-Villanueva (2019) | Propose a methodology for assessing ex-ante the most suitable areas in which LC initiatives could be carried out | The case study focuses on olive groves in the Andalusia region (Spain). Interviews to 72 landowners | Interviews to 72 landowners and use of a methodology for assessing ex-ante LC projects | LC procedure in the areas identified would bring about a noticeable improvement in the property structure and production cost savings of between 5.8% and 15.3% |
Janus and Markuszewska (2019) | Verify the hypothesis of persistence of favourable basic parameters of LF and other factors affecting the efficiency of agricultural production after LC | Jabłonka commune located in the southern Poland | Comparison of indicators for all villages from the commune selected | There is a multigenerational and positive impact of LC on the development and functioning of rural areas. This is evident regarding the average plot size, the road accessibility, the land fragmentation indicators and the lowest level of land abandonment |
Zhou et al. (2019) | Analyse the mechanism and path behind LC boosting poverty alleviation | Data on LC in Fuping County (China) | Revision of the evolution of China’s land policies related to poverty alleviation since 1978. Case study method | LC has contributed to increasing cultivated land area, promoting agricultural production scale, improving rural production conditions and living environment, alleviating ecological risk and supporting for rural development and poverty alleviation |
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Álvarez, I., Orea, L., Pérez-Méndez, J.A. (2020). The Impact of Land Consolidation on Livestock Production in Asturias’ Parishes: A Spatial Production Analysis. In: Aparicio, J., Lovell, C., Pastor, J., Zhu, J. (eds) Advances in Efficiency and Productivity II. International Series in Operations Research & Management Science, vol 287. Springer, Cham. https://doi.org/10.1007/978-3-030-41618-8_15
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