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In economics, land comprises all naturally occurring resources as well as geographic land. Examples include particular geographical locations, mineral deposits, forests, fish stocks, atmospheric quality, geostationary orbits, and portions of the electromagnetic spectrum. Supply of these resources is fixed.
Factor of production
Land is considered one of the three factors of production (also sometimes called the three producer goods) along with capital, and labor. Natural resources are fundamental to the production of all goods, including capital goods. While the particular role of land in the economy was extensively debated in classical economics it played a minor role in the neoclassical economics dominant in the 20th century. Income derived from ownership or control of natural resources is referred to as rent.
Ownership
Because no man created the land, it does not have a definite original proprietor, owner or user.
No man made the land. It is the original inheritance of the whole species.
Consequently, conflicting claims on geographic locations and mineral deposits have historically led to disputes over their economic rent and contributed to many civil wars and revolutions.
In the context of geographic locations the resulting conflict is regularly understood as the land question (see e.g. United Kingdom, South Africa, Canada).
Addressing the land question
Land reform
Land reform programs are designed to redistribute possession and/or use of geographic land.
Georgism
Georgists hold that this implies a perfectly inelastic supply curve (i.e., zero elasticity), suggesting that a land value tax that recovers the rent of land for public purposes would not affect the opportunity cost of using land, but would instead only decrease the value of owning it. This view is supported by evidence that although land can come on and off the market, market inventories of land show, if anything, an inverse relationship to price (i.e., negative elasticity).
Significance
Land plays a vital role in advanced economies. In the UK, the "non-produced asset of land" accounts for 51% of the country's total net worth, implying that it plays a more critical role in the economy than capital.
Academic
Some United Kingdom and commonwealth universities offer courses in land economy, where economics is studied alongside law, business regulation, surveying, and the built and natural environments. This mode of study at Cambridge dates back to 1917 when William Cecil Dampier suggested the creation of a school of rural economy at the university.
Accounting
As a tangible asset, land is represented in accounting as a fixed asset or a capital asset.
Sustainability
The sustainable use of land is the focus of some economic theories.
See also
- Citizen's dividend – Georgist proposed policy
- Economics of Land Degradation Initiative – Global initiative for sustainable land management
- Factors of production – Resources used in the production process
- Land consumption – Expansion of built-up area
- Land monopoly – Ownership of land in a particular area by a small number of people or organizations
- Land reform – Changing of laws, regulations, or customs regarding land ownership
- Land value tax – Levy on the unimproved value of land
- Means of production – Inputs used in the production of goods and services with economic value
- Magic: The Gathering#Luck vs. skill – Collectible card game
- Property rights (economics) – Economics concept
- Real estate appraisal – Process of developing an opinion of value for real property
- Social metabolism – Study of materials and energy flows between nature and society
References
- "Land - economics". britannica.com.
- Samuelson, Paul; Nordhaus, William (2010). Economics. New York: McGraw-Hill/Irwin. ISBN 978-0-07-351129-0.
- Ryan-Collins, Josh; Lloyd, Toby; Macfarlane, Laurie (2017). Rethinking the Economics of Land and Housing. Zed Books. ISBN 978-1786991188.
- Mill, John Stuart (1848). The Principles of Political Economy. Book 2, Chapter 2, §6. Archived from the original on September 14, 2009.
- Christophers, Brett (2019-04-18). "England's new enclosures: why questions of land ownership are entering the political mainstream". Retrieved 2019-05-01.
- Ramaphosa, Cyril (2018-08-23). "Land reform in South Africa is crucial for inclusive growth". Financial Times. Archived from the original on 2022-12-10. Retrieved 2019-05-01.
- Hunter, Troy (2017-01-30). "Opinion: The land question should be a matter of concern". Vancouver Sun. Retrieved 2015-09-02.
- "The UK national balance sheet estimates: 2017". Office for National Statistics. 2018-08-01. Retrieved 2019-05-01.
- "Land Economy Undergraduate Prospectus". Archived from the original on 2009-09-12. Retrieved 2009-05-04.
- "Land Economy - Rural Surveying - Postgraduate Taught Degrees - Study Here - The University of Aberdeen". www.abdn.ac.uk. Retrieved 2019-11-16.
- "Commonwealth Association of Surveying and Land Economy (CASLE) - The Commonwealth". thecommonwealth.org. 30 July 2013.
- "A brief history of Land Economy — Department of Land Economy". www.landecon.cam.ac.uk.
- "Rethinking the Land Economy: Keeping 1.5°C in Sight by Bernice Lee". Hoffmann Centre for Sustainable Resource Economy.
Further reading
- Anthony C. Fisher (1987). "Natural resources," The New Palgrave: A Dictionary of Economics, v. 3, pp. 612–14.
- João Pedro Galhano Alves (2009). "The artificial simulacrum world. The geopolitical elimination of communitary [sic] land use and its effects on our present global condition", Eloquent Books, New York, USA, 71 pp.
- Pierre Coulomb (1994). "De la terre à l’état: Eléments pour un cours de politique agricole", ENGREF, INRA-ESR Laboratoire d’Economie des Transitions, Montpellier, France, 47 pp.
This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Land economics news newspapers books scholar JSTOR January 2018 Learn how and when to remove this message In economics land comprises all naturally occurring resources as well as geographic land Examples include particular geographical locations mineral deposits forests fish stocks atmospheric quality geostationary orbits and portions of the electromagnetic spectrum Supply of these resources is fixed Factor of productionLand is considered one of the three factors of production also sometimes called the three producer goods along with capital and labor Natural resources are fundamental to the production of all goods including capital goods While the particular role of land in the economy was extensively debated in classical economics it played a minor role in the neoclassical economics dominant in the 20th century Income derived from ownership or control of natural resources is referred to as rent OwnershipBecause no man created the land it does not have a definite original proprietor owner or user No man made the land It is the original inheritance of the whole species John Stuart Mill Consequently conflicting claims on geographic locations and mineral deposits have historically led to disputes over their economic rent and contributed to many civil wars and revolutions In the context of geographic locations the resulting conflict is regularly understood as the land question see e g United Kingdom South Africa Canada Addressing the land questionLand reform Land reform programs are designed to redistribute possession and or use of geographic land Georgism Georgists hold that this implies a perfectly inelastic supply curve i e zero elasticity suggesting that a land value tax that recovers the rent of land for public purposes would not affect the opportunity cost of using land but would instead only decrease the value of owning it This view is supported by evidence that although land can come on and off the market market inventories of land show if anything an inverse relationship to price i e negative elasticity SignificanceLand plays a vital role in advanced economies In the UK the non produced asset of land accounts for 51 of the country s total net worth implying that it plays a more critical role in the economy than capital AcademicSome United Kingdom and commonwealth universities offer courses in land economy where economics is studied alongside law business regulation surveying and the built and natural environments This mode of study at Cambridge dates back to 1917 when William Cecil Dampier suggested the creation of a school of rural economy at the university AccountingAs a tangible asset land is represented in accounting as a fixed asset or a capital asset SustainabilityThe sustainable use of land is the focus of some economic theories See alsoCitizen s dividend Georgist proposed policy Economics of Land Degradation Initiative Global initiative for sustainable land management Factors of production Resources used in the production process Land consumption Expansion of built up area Land monopoly Ownership of land in a particular area by a small number of people or organizationsPages displaying short descriptions of redirect targets Land reform Changing of laws regulations or customs regarding land ownership Land value tax Levy on the unimproved value of land Means of production Inputs used in the production of goods and services with economic value Magic The Gathering Luck vs skill Collectible card game Property rights economics Economics concept Real estate appraisal Process of developing an opinion of value for real property Social metabolism Study of materials and energy flows between nature and societyPortals Business and economicsEcologyEnvironmentReferences Land economics britannica com Samuelson Paul Nordhaus William 2010 Economics New York McGraw Hill Irwin ISBN 978 0 07 351129 0 Ryan Collins Josh Lloyd Toby Macfarlane Laurie 2017 Rethinking the Economics of Land and Housing Zed Books ISBN 978 1786991188 Mill John Stuart 1848 The Principles of Political Economy Book 2 Chapter 2 6 Archived from the original on September 14 2009 Christophers Brett 2019 04 18 England s new enclosures why questions of land ownership are entering the political mainstream Retrieved 2019 05 01 Ramaphosa Cyril 2018 08 23 Land reform in South Africa is crucial for inclusive growth Financial Times Archived from the original on 2022 12 10 Retrieved 2019 05 01 Hunter Troy 2017 01 30 Opinion The land question should be a matter of concern Vancouver Sun Retrieved 2015 09 02 The UK national balance sheet estimates 2017 Office for National Statistics 2018 08 01 Retrieved 2019 05 01 Land Economy Undergraduate Prospectus Archived from the original on 2009 09 12 Retrieved 2009 05 04 Land Economy Rural Surveying Postgraduate Taught Degrees Study Here The University of Aberdeen www abdn ac uk Retrieved 2019 11 16 Commonwealth Association of Surveying and Land Economy CASLE The Commonwealth thecommonwealth org 30 July 2013 A brief history of Land Economy Department of Land Economy www landecon cam ac uk Rethinking the Land Economy Keeping 1 5 C in Sight by Bernice Lee Hoffmann Centre for Sustainable Resource Economy Further readingAnthony C Fisher 1987 Natural resources The New Palgrave A Dictionary of Economics v 3 pp 612 14 Joao Pedro Galhano Alves 2009 The artificial simulacrum world The geopolitical elimination of communitary sic land use and its effects on our present global condition Eloquent Books New York USA 71 pp Pierre Coulomb 1994 De la terre a l etat Elements pour un cours de politique agricole ENGREF INRA ESR Laboratoire d Economie des Transitions Montpellier France 47 pp
