02439naa a2200277 a 450000100080000000500110000800800410001902200330006002400280009310000160012124501310013726000090026850004280027752011080070565300630181365300200187665300170189665300230191365300340193665300120197070000230198270000190200570000240202470000260204877300870207410648552024-10-07       2024    bl uuuu     u00u1 u    #d  a0169-5151; e-ISSN: 1574-08627 a10.1111/agec.128572DOI1 aCAFFERA, M.  aThe implicit market price of soil erosionban estimation using a hedonic model with spatial spillovers.h[electronic resource]  c2024  aArticle history: Accepted 13 May 2024, Revised 9 March 2024, Received9 March 2024. -- Correspondence: Marcelo Caffera, Universidad de Montevideo, Prudencio de Pena 2544, Montevideo, Uruguay. Email: marcaffera@um.edu.uy -- Funding: Latin American and Caribbean Environmental Economics Program, Grant/Award Number: IDEA-018/2017; Agencia Nacional de Investigación e Innovación, Grant/Award Number: POS_NAC_2015_1_110233. --  aABSTRACT.- We estimate the implicit market price of soil erosion using quarterly data of 2824 agricultural farms traded in Uruguay between 2000 and 2014.Aunique feature of our estimation is that we allow for possible spatial spillovers. We find evidence of a negative and statistically significant association between erosion and land values. On average, an additional loss of 1% of the original topsoil due to erosion is associated with a direct (own) decrease of .24% in the per-hectare price of agricultural land (P-value: .012, 95% CI: -.0042, -.0005). In 2023 dollars, this is equivalent to a decrease of USD 8.7 in the average price per hectare, or USD 1130 in the price of the average farm. In terms of tons of soil, the average value is $.24 a ton. Finally, considering the 50 km radius of our spatial model, the value of losing 1% of topsoil is $15.8 million. The value of our estimates is sensitive to our measure of erosion and our specification of the spatial-temporal weighting matrix, but the statistical association is robust. © 2024 International Association of Agricultural Economists.  aÁREA DE RECURSOS NATURALES, PRODUCCIÓN Y AMBIENTE - INIA  aFarmland values  aSoil erosion  aSpatial spillovers  aSpatio-temporal hedonic model  aURUGUAY1 aVÁSQUEZ LAVIN, F.1 aBARRIENTOS, M.1 aRODRÍGUEZ ANZA, D.1 aCARRASCO-LETELIER, L.  tAgricultural Economics, 2024. https://doi.org/10.1111/agec.12857  -- [Early View].