Climate, Irrigation, and GHGs : a Regional Analysis of EU Arable Land Values

Abstract: This master's thesis explores the influence of climate conditions on EU arable land values, pioneering a novel approach that blends the Ricardian Approach models within an Ordinary Least Squares (OLS) framework. By employing this methodology at the regional level of NUTS2, the study offers insights into the interplay between climate and land value. The analysis incorporates the share of irrigated land and greenhouse gas (GHG) emissions as crucial factors, establishing a more comprehensive understanding of their influence and contributions. Key findings reveal that EU arable land values are sensitive to temperature extremes, with irrigation as an effective countermeasure. GHG emissions exhibit a positive, unexpected relationship with land value, suggesting further investigation into this association is needed.