Green Transition and the Land Market

Background and Objective

The term "Green Transition" serves as a catchphrase to describe the comprehensive and diverse efforts of society to reduce the negative environmental impacts of human activities and create a more sustainable future. Numerous socio-political strategies place demands on land use. For instance, the production of sustainable energy, the creation of CO₂ sinks, or the restoration of ecosystems require large areas of land. As a result, the already existing competition for agricultural land is intensified.

Differing ideas about the use of agricultural land influence land markets, with the rental market or the sales market being affected depending on the intended use and ownership structures. These markets are locally differentiated and largely opaque. Neither the availability of land nor the prices for purchase or lease can be predicted. Market developments, in turn, affect whether and at what cost the goals of the Green Transition can be realized. These mutual effects remain largely unexplored.

The TraBoMa project aims to gain initial insights into whether and under what conditions the necessary land is available, what are the impacts of possible land mobilization instruments on land markets, and how these feedbacks affect land availability and prices.

Approach

The project is divided into the following work packages:

1. Systematization of land requirements for the Green Transition and their role in agricultural land markets
2. Description of agricultural land markets and qualitative analysis regarding increased land demand
3. Compilation and evaluation of findings from land mobilization projects using case studies
4. Derivation of conclusions and policy recommendations

Our Research Questions

• What effects do land availability and the lease and purchase markets for agricultural land have on the Green Transition?
• What feedback does land mobilization through the Green Transition have on agricultural land markets, and what conditions might hinder or obstruct the Green Transition?
• What political options are available to remove obstacles to the Green Transition, reduce the societal costs caused by the land market, and create effective incentives for ecologically sustainable land use?