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Valuation of Wetland Restoration: Evidence from the Housing Market in Arkansas

Author

Listed:
  • Matthew Richardson

    (University of Arkansas at Pine Bluff
    University of Florida)

  • Pengfei Liu

    (University of Rhode Island)

  • Michael Eggleton

    (University of Arkansas at Pine Bluff)

Abstract

This paper investigates the impact of the Wetland Reserve Program utilizing the residential housing and wetland easement data to estimate the benefit of wetland restoration in Arkansas. The environmental benefits of alternative agricultural management practices are underestimated and largely ignored by agriculture producers and beneficiaries. Governments at various levels have developed programs to provide appropriate economic incentives to optimize agricultural production and environmental benefits. Based on a quasi-experimental approach and an event study design, our results indicated that there is a statistically significant increase in property values near the wetland restoration sites and the estimated increase ranges from 6% to 10%.

Suggested Citation

  • Matthew Richardson & Pengfei Liu & Michael Eggleton, 2022. "Valuation of Wetland Restoration: Evidence from the Housing Market in Arkansas," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 649-683, March.
    • Handle: RePEc:kap:enreec:v:81:y:2022:i:3:d:10.1007_s10640-021-00643-0
    DOI: 10.1007/s10640-021-00643-0
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    Cited by:

    1. Liu, Pengfei & Li, Yanggu & Zhang, Wei, 2023. "Local Economic Benefits of the Environmental Quality Incentives Program: Evidence from Rural Housing Markets," 2023 Annual Meeting, July 23-25, Washington D.C. 335843, Agricultural and Applied Economics Association.
    2. Karwowski, Nicole, 2023. "The Effects of Wetland Easements on Agricultural Yields," 2023 Annual Meeting, July 23-25, Washington D.C. 335462, Agricultural and Applied Economics Association.
    3. Yingdan Mei & Pengfei Liu & Lina Meng & Lu Lin, 2024. "Evaluate the Impacts of Wind Farm Facilities on Land Values with Geographically-Linked Microdata in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(2), pages 465-489, February.
    4. Xingchi Shen & Yueming Lucy Qiu & Pengfei Liu & Anand Patwardhan, 2022. "The Effect of Rebate and Loan Incentives on Residential Heat Pump Adoption: Evidence from North Carolina," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 741-789, July.

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    More about this item

    Keywords

    Wetlands restoration; Non-market valuation; Conservation program; Public goods; Housing market;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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