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Land Use Conflicts in the Coastal Zone: An Approach for the Analysis of the Opportunity Costs of Protecting Coastal Resources

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  • Edwards, Steven F.
  • Anderson, Glen D.

Abstract

The implicit price (hedonic) equation for the housing market in a coastal town in southern Rhode Island was estimated using a conditional Box-Cox maximum likelihood procedure. Linear, log-linear, and semi-log functional forms were rejected with 95% confidence. Estimates of marginal implicit prices for water related attributes (view of, frontage on, and proximity to a coastal salt water pond) derived from these rejected models were quite different from those determined from the optimal functional form. This result has important ramifications for public policy, as is shown in an example, since these attributes were found to be highly valued in the housing market.

Suggested Citation

  • Edwards, Steven F. & Anderson, Glen D., 1984. "Land Use Conflicts in the Coastal Zone: An Approach for the Analysis of the Opportunity Costs of Protecting Coastal Resources," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 13(1), pages 1-9, April.
    • Handle: RePEc:ags:nareaj:159270
    DOI: 10.22004/ag.econ.159270
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    References listed on IDEAS

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    Cited by:

    1. Jordan, Jeffrey L. & Shewfelt, R.L. & Prussia, Stanley E. & Hurst, W.C., 1985. "Estimating Implicit Marginal Prices Of Quality Characteristics Of Tomatoes," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    2. Gardner, Kent & Barrows, Richard, 1985. "The Impact Of Soil Conservation Investments On Land Prices," 1985 Annual Meeting, August 4-7, Ames, Iowa 278507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Anderson, Glen D., 1984. "Participation In Voluntary Transfer Of Development Rights Programs: Landowner Incentives And Design Issues," 1984 Annual Meeting, August 5-8, Ithaca, New York 278911, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Jordan, Jeffery L. & Shewfelt, R.L. & Prussia, S.E. & Hurst, W.C., 1985. "Estimating Implicit Marginal Prices of Tomatoes Using A Flexible Functional Form," 1985 Annual Meeting, August 4-7, Ames, Iowa 278650, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Michael P. McGonagle & Stephen K. Swallow, 2005. "Open Space and Public Access: A Contingent Choice Application to Coastal Preservation," Land Economics, University of Wisconsin Press, vol. 81(4).
    6. Edwards, Steven F., 1989. "On Estimating Household Demand For Outdoor Recreation From Property Values: An Exploration," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-9, October.

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