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Distributional impacts of conservation on land prices: Evidence from Natura 2000
This paper studies the costs and distributional impacts of the Natura 2000 network. We estimate how land use restrictions are capitalized into property prices in Finland by combining data on land transactions with the roll-out of the protection network. Our results indicate a sizable negative effect on forest and agricultural land and a moderate negative effect on unbuilt lots inside conservation areas. The negative effects are more pronounced in socio-economically deprived areas. In contrast, we find a positive effect on built properties both inside and in near vicinity of the protected areas. The net economic costs of Natura 2000 were moderate, but it had a clear distributional impact, reallocating rents from landowners to house and cabin owners.
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