Perpustakaan Digital ITB

Externalities of rural–urban land conversion are major factors in the inefficiency of land resource allocation. Although many studies have proposed policy solutions of externalities,measuring externalities is still a challenge. According to definition of externalities, externalities of rural–urban land conversion are the sum of nonmarket externalities and market externalities during land conversion process excluding owner of converted land. Therefore, to measure external costs accurately, the identification of internal parcels (converted parcels) and external parcels (influenced parcels) is necessary, and both nonmarket and market external costs should be considered....