Hedonic Pricing For A Cost Benefit Analysis Of A Public Water Supply Scheme
AbstractDuring the 1950s and 1960s pipelines were built to provide water to many farms in the central wheatbelt of Western Australia using public funds. The resulting network has become known as the Comprehensive Water Supply Scheme. The expansion of the Scheme is currently under consideration. An ex ante cost benefit analysis of the proposed expansion is undertaken. An earlier analysis which focused on the benefits of the reduced necessity to cart water was rejected by farmer groups because of the inability of the analysis to properly account for domestic benefits and risk reduction. To overcome these criticisms a hedonic model of farm land values is formulated in which the independent variables are the characteristics of a property, including whether or not the property is connected to the Scheme. The implicit marginal price (or value) of Scheme connection is then derived. An advantage of this technique is that it estimates the value that the farmers allocate to Scheme water in the market place. The conclusion is that the benefits of Scheme water are considerably less than the costs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural Economics.
Volume (Year): 35 (1991)
Issue (Month): 01 (April)
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
Demand and Price Analysis;
Other versions of this item:
- Tim J. Coelli & J. Lloyd‐Smith & D. Morrison & J. Thomas, 1991. "Hedonic Pricing For A Cost Benefit Analysis Of A Public Water Supply Scheme," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 1-20, 04.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David L. Chicoine, 1981. "Farmland Values at the Urban Fringe: An Analysis of Sale Prices," Land Economics, University of Wisconsin Press, vol. 57(3), pages 353-362.
- Blase, Melvin G. & Hesemann, Clyde, 1973. "Farm Land Prices: Explainable Or Illogical?," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(01), July.
- James G. MacKinnon, 1983. "Model Specification Tests Against Non-Nested Alternatives," Working Papers 573, Queen's University, Department of Economics.
- Miranowski, John & Hammes, B., 1984. "Implicit Prices of Soil Characteristics for Farmland in Iowa," Staff General Research Papers 10706, Iowa State University, Department of Economics.
- Halvorsen, Robert & Pollakowski, Henry O., 1981. "Choice of functional form for hedonic price equations," Journal of Urban Economics, Elsevier, vol. 10(1), pages 37-49, July.
- Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, January.
- Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November.
- Phil Graves & James C. Murdoch & Mark A. Thayer & Don Waldman, 1988. "The Robustness of Hedonic Price Estimation: Urban Air Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 220-233.
- David A. King & J. A. Sinden, 1988. "Influence of Soil Conservation on Farm Land Values," Land Economics, University of Wisconsin Press, vol. 64(3), pages 242-255.
- Young, Ralph, 1991. "The Economic Significance of Environmental Resources: A Review of the Evidence," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(03), December.
- Oczkowski, Edward A., 1993.
"A Hedonic Price Function for Australian Premium Table Wine,"
1993 Conference (37th), February 9-11, 1993, Sydney, Australia
147769, Australian Agricultural and Resource Economics Society.
- Oczkowski, Edward A., 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(01), April.
- Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, 04.
- Anne-Kathrin Last, 2007. "The Monetary Value of Cultural Goods: A Contingent Valuation Study of the Municipal Supply of Cultural Goods in Lueneburg, Germany," Working Paper Series in Economics 63, University of Lüneburg, Institute of Economics.
- Salayo, Nerissa D. & Voon, Thomas Jan P. & Selvanathan, Saroja, 1999. "Implicit Prices Of Prawn And Shrimp Attributes In The Philippine Domestic Market," Marine Resource Economics, Marine Resources Foundation, vol. 14(1).
- Veeman, Terrence S. & Veeman, Michele M. & Adamowicz, Wiktor L. & Royer, S. & Viney, Bruce & Freeman, Ruth & Baggs, J., 1997. "Conserving Water in Irrigated Agriculture: The Economics and Valuation of Water Rights," Project Report Series 24047, University of Alberta, Department of Resource Economics and Environmental Sociology.
- Walpole, Sandra C. & Lockwood, Michael, 1999. "Influence of remnant native vegetation on rural land values: a hedonic pricing application," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125032, Australian Agricultural and Resource Economics Society.
- Salayo, Nerissa D., 2000. "Shrimp Price and Quality Changes in the Asia Pacific: Implications for the Philippines," Discussion Papers DP 2000-11, Philippine Institute for Development Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.