Land-use modeling stands as a pivotal tool in shaping sustainable development policies. With the rapid advancement of remote-sensing technology and the widespread adoption of satellite imagery-based land cover products, these datasets have emerged as primary sources for understanding land-use dynamics due to their high spatial and temporal resolutions. Yet, it remains challenging to effectively integrate such rich panel data into nonlinear econometric land-use models. This paper introduces a method to seamlessly incorporate land cover panel data into econometric models, enabling comprehensive utilization of temporal information within a single framework.-By capturing dynamic land-use patterns, the method enhances prediction accuracy while mitigating issues such as autocorrelated error terms commonly encountered in panel data analysis.-The method is straightforward to implement and applicable to many nonlinear models, making it particularly suitable for datasets with large sample sizes.
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Li et al. (2024) studied this question.
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