Evaluating regional impacts of land consolidation projects

Pauliina Krigsholm et al.

The impacts of land consolidation projects have traditionally been assessed from the agricultural point of view. Also ecological and traffic-related aspects have been increasingly covered during the past decades. The impact of land consolidations on regional economic development, however, is a less examined topic. In this study we present two land consolidation cases from Finland and evaluate their regional economic effects (at NUTS-3 level) by using an input-output (IO) model. Regional IO models provide multipliers that can be used to estimate the economy-wide effects that an initial change in economic activity, in this case a land consolidation project, has on a regional economy. We analyze both the impacts of costs and benefits of land consolidation projects. In the first case project, Sievinkyl?, the immediate revenue impacts of the costs were ?2.245.000 and the employment impact were 15 person-work years. The wages paid for households were ?614.000, indirect impact on businesses was ?555.000, indirect multiplier impacts on households were ?173.000 and on businesses ?269.000. The effect of multiplier impacts on employment was 5.8 person-work years. In the second project, Yli-Kannus, the immediate revenue impacts of the costs were ?1.019.000 and the employment impact were 7.6 person-work years. Indirect impacts on household wages were ?318.000 and ?276.000 on businesses, with an employment impact of 3.2 person-work years in businesses. The multiplier impacts on households were ?89.000 and on businesses ?198.000.

Event: Symposium on Land Consolidation and Readjustment for Sustainable Development

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Document type:Evaluating regional impacts of land consolidation projects (395 kB - pdf)