Most land valuation approaches in Indonesia are being conducted using market prices based on transactional value of property transfer. And its more subjected approach by finding the arranged prices to transfer the property land between buyer (willingness to pay) and seller (willingness to accept).
Meanwhile, the land itself still has other benefits, such as social and ecological functions. For example: agricultural areas not only have market value but also ecological value, for supporting the role of water management, etc. Grasslands also have ecological value, but this is not included or considered in the price negotiations.
Has anyone experienced this? How do you apply alternative methods or approaches of land valuation? How can it work for national land policy? How do we tax the land which has more productive uses which are not calculated into the market value?
Dear Yudi Wahyudin,
As your correctly stated, valuation (or evaluation) of land depends on many factors such as (1) access (i.e., near to cities, roads, and infrastructure) if the intention is to use it for building new houses, (2) productivity or suitability (if the intension is to use for agricultural production), (3) ecological and ecological values which are difficult to valuate, as it differs from one area and society to another. So to choose and run an evaluation approach, this requires clarifying these and other factors in more details to work out any land use policy. Hope this helps.
Would you please share what you have conducted mention in your work or had ever worked?
I have published number of papers related to land evaluation, in addition to my M.Sc. and PhD. So you may have a quick look at my publication contribution at Research Gate and you may find some publications that attract your attention. All are available as pdf files.
I conducted several land evaluations in order to determine its suitability for touristic or agricultural use. This was performed through geoecological approach. But today You can find many papers on landscape ecological land evaluation that tend to be holistic and objective.
I would recommend these papers (all available for free on Internet):
1. Yong, Y., Zhang, H., Wang, X., Schubert, U., 2010: Urban Land-Use Zoning Based on Ecological Evaluation for Large Conurbations in Less Developed Regions: Case Study in Foshan, China, Journal of Urban Planning and Development 136 (2), 116-125
2. Steiner, F., McSherry, L., Cohen, J., 2000: Land suitability analysis for the upper Gila River watershed, Landscape and Urban Planning 50, 199-214
3. Balej, M., Anděl, J., 2008: Land use changes and environmental stress accounting (case study from northwestern part of the Czech-German borderland), Journal of Geography and Regional Planning 1 (5), 97-109
4. Yang, F., Zeng, G., Du, G., Tang, G., Zhou, J., and Li, Z., 2008: Spatial analyzing system for urban land-use management based on GIS and multi-criteria assessment modeling, Progress in Natural Science 18, 1279-1984
5. Kopecka, M., 2005: The Landscape-Ecological Plan in the Process of Rural Landscape Development supported by SAPARD, Geographia Polonica 77 (2), 63-78
Here, in Indonesia, we try to valuate the land using non market valuation and try to adjust the land value using total economic valuation method. Here is the example study and still need to be developed:
https://www.researchgate.net/publication/256037690_Kajian_Kebijakan_Nilai_Fiskal_Lahan_%28Policy_Analysis_Study_on_Land_Fiscal_Value%29?ev=prf_pub
Article Kajian Kebijakan Nilai Fiskal Lahan (Policy Analysis Study o...
As life support system, nature contributes values that give benefit not only for the system itself but also for human well-being. The existence of all components in the system including biodiversity, processes and functions is very important especially for safety, food, ethno-practices, energy sources, and other values. In fact humans capture the ecological values of all the components in the system like density of forest that create peaceful and fresh air, beautiful insects, minerals, or delicious fruits with high prices in the market. Humans also capture the ecological values of big trunk of trees that contribute high amount of carbon storage or biomass, high soil fertility in certain areas where people can practice cultivation, density and diversity of coral reef that provide food and protection for diversity of fish and many other values. So, its really very broad issues including the complexity in putting monetary unit of the ecological value. ecosystem goods and services are dependently interconnected. You have to limit your scope of valuation, It is based on the carbon pools, water catchment, biodiversity, necromass, land degradation, social vulnerability, or other (what, where, why). there are many articles about economic valuation but very little in ecological valuation discussion. I'm also working on appraising ecological values for forest ecosystem right now for my PhD project. if you interested on the articles you could email me but be specific because there are many articles about natural resources, ecosystem, and biodiversity valuation including the ones mentioned by Sir Neven and Sir Mahmoud
Thanks sulis. I agree with you. I have been working on ecosystem services as well as ecological econimic valuation. You can see as well as in my working paper about Lombok strait, seaweed, and socioeconomic value of seaweed
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