Public provision versus private provision of industrial land: a hedonic approach

This study examines the factors that explain the differences observed between the industrial land prices offered by the public sector and those offered by the private sector by means of estimating three hedonic pricing models. The results obtained show that location, defined as the distance to a highway, the distance to the city business district and the distance to the capital of the province, have an important impact on industrial land value. However, this impact is greater when private developers provide the land. Other variables considered, such as who is behind the provision of the industrial land, have an important impact on sale prices.