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Dams, Dam Removal, And River Restoration: A Hedonic Property Value Analysis

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  • LYNNE Y. LEWIS
  • CURTIS BOHLEN
  • SARAH WILSON

Abstract

This article presents the results of a hedonic property value analysis for multiple hydropower sites along the Kennebec River in Maine, including the former site of the Edwards Dam in Augusta, Maine. The effect of the removal of the Edwards Dam on the Kennebec River in Maine is examined through consumer’s marginal willingness to pay to be close to or distant from the dam site. Data from both before and after the dam was removed are used to estimate changes in marginal prices. A similar data set is also used to look at the effects of the remaining upstream dams on property values. This article presents one of the first (to our knowledge) ex post analyses on the economic impact of dam removal on property values. As more privately owned dams in the United States come up for relicensing, evaluating the impacts with and without the dam will become increasingly important. This work can help inform those analyses. (JEL Q25, Q51, Q58)

Suggested Citation

  • Lynne Y. Lewis & Curtis Bohlen & Sarah Wilson, 2008. "Dams, Dam Removal, And River Restoration: A Hedonic Property Value Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 175-186, April.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:2:p:175-186
    DOI: 10.1111/j.1465-7287.2008.00100.x
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    Cited by:

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    2. Prasad Neelawala & Clevo Wilson & Wasantha Athukorala, 2013. "The impact of mining and smelting activities on property values: a study of Mount Isa city, Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(1), pages 60-78, January.
    3. Charlotte Ham & John B. Loomis & Patricia A. Champ, 2015. "Relative Economic Values of Open Space Provided by National Forest and Military Lands to Surrounding Communities," Growth and Change, Wiley Blackwell, vol. 46(1), pages 81-96, March.
    4. Cohen, Jeffrey P. & Danko, Joseph J. & Yang, Ke, 2019. "Proximity to a water supply reservoir and dams: Is there spatial heterogeneity in the effects on housing prices?," Journal of Housing Economics, Elsevier, vol. 43(C), pages 14-22.
    5. Wasantha Athukorala & Wade Martin & Prasad Neelawala & Darshana Rajapaksa & Clevo Wilson, 2016. "Impact Of Wildfires And Floods On Property Values: A Before And After Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-23, March.
    6. Sascha Samadi, 2017. "The Social Costs of Electricity Generation—Categorising Different Types of Costs and Evaluating Their Respective Relevance," Energies, MDPI, vol. 10(3), pages 1-37, March.
    7. Tapsuwan, Sorada & Polyakov, Maksym & Bark, Rosalind & Nolan, Martin, 2015. "Valuing the Barmah–Millewa Forest and in stream river flows: A spatial heteroskedasticity and autocorrelation consistent (SHAC) approach," Ecological Economics, Elsevier, vol. 110(C), pages 98-105.
    8. Wolf, David & Takeuchi, Kenji, 2022. "Holding back the storm: Dam capitalization in residential and commercial property values," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    9. Bill Provencher & Helen Sarakinos & Tanya Meyer, 2008. "Does Small Dam Removal Affect Local Property Values? An Empirical Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 187-197, April.
    10. Pascal da Costa & Daniel Hernandez, 2019. "The Economic Value of Ecosystem Conservation: A Discrete Choice Experiment at the Taravo River Basin in Corsica," Working Papers hal-01971681, HAL.
    11. Anthony Good & Emily Pindilli, 2022. "Estimating the Effect of Tidal Marsh Restoration on Housing Prices: A Hedonic Analysis in the Nisqually National Wildlife Refuge, Washington, USA," Land, MDPI, vol. 11(9), pages 1-12, August.
    12. Sara Sousa & Anabela Botelho & Lígia M. Costa Pinto & Marieta Valente, 2019. "How Relevant Are Non-Use Values and Perceptions in Economic Valuations? The Case of Hydropower Plants," Energies, MDPI, vol. 12(15), pages 1-18, August.
    13. David Wolf & Kenji Takeuchi, 2022. "Who Gives a Dam? Capitalization of Flood Protection in Fukuoka, Japan," Discussion Papers 2203, Graduate School of Economics, Kobe University.
    14. Borisova, Tatiana & Bi, Xiang & Hodges, Alan & Holland, Stephen, 2017. "Is the tide is changing? Assessing costs and benefits of dam removal and river restoration: a case study in Florida," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252833, Southern Agricultural Economics Association.
    15. Charlotte Ham & Patricia A. Champ & John B. Loomis & Robin M. Reich, 2012. "Accounting for Heterogeneity of Public Lands in Hedonic Property Models," Land Economics, University of Wisconsin Press, vol. 88(3), pages 444-456.
    16. Athukorala, Wasantha & Martin, Wade & Wilson, Clevo & Rajapaksa, Darshana, 2019. "Valuing bushfire risk to homeowners: Hedonic property values study in Queensland, Australia," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 44-56.
    17. Mutlu, Asli & Roy, Debraj & Filatova, Tatiana, 2023. "Capitalized value of evolving flood risks discount and nature-based solution premiums on property prices," Ecological Economics, Elsevier, vol. 205(C).

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    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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