We Love Green

Abstract

Agricultural landscapes generate a complex bundle of positive and negative local externalities. This paper estimates the impact of the type of farming (organic versus conventional) on residential property prices in France, using an exhaustive database of 2.9 million housing transactions merged with geolocalized land-use data, and a dual identification strategy (buffer and distance-based). Our results establish a clear hierarchy of preferences. At short distances, proximity to conventional agriculture acts as a significant baseline disamenity, and organic farming as a mitigating factor. This premium increases with the extent of the organic landscape and is most pronounced in periurban areas.