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The Demand for Environmental Quality: An Application of Hedonic Pricing in Golf


Author Info

  • Frank F. Limehouse

    (Chicago Census Research Data Center and DePaul University)

  • Peter C. Melvin

    (Ernst and Young LLP)

  • Robert E. McCormick

    (Clemson University)


The analysis uses an exhaustive golf course database that contains over 100 golf course variables on more than 15,000 golf courses in the United States combined with data from the Audubon International Cooperative Sanctuary Program to examine the market setting of environmental certification on golf courses. Using the Rosen (1974) two-stage estimation technique, quality-adjusted structural demand and supply equations for golf are estimated. A standard hedonic pricing model shows a substantial price premium for environmentally certified Audubon International golf courses. Additional results suggest that the increase in marginal benefits of certification is approximately equal to the increase in marginal costs.

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Bibliographic Info

Article provided by in its journal Journal of Sports Economics.

Volume (Year): 11 (2010)
Issue (Month): 3 (June)
Pages: 261-286

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Handle: RePEc:sae:jospec:v:11:y:2010:i:3:p:261-286

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Related research

Keywords: environmental economics; golf; hedonic pricing; environmental certification;


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Cited by:
  1. Frank Limehouse & Michael Maloney & Kurt Rotthoff, 2012. "Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry," Review of Industrial Organization, Springer, vol. 40(3), pages 151-165, May.
  2. Robert McCormick & Robert Tollison, 2010. "Chivalry in golf?," Public Choice, Springer, vol. 142(3), pages 323-334, March.
  3. Frank Limehouse & Robert McCormick, 2011. "Impacts of Central Business District Location: A Hedonic Analysis of Legal Service Establishments," Working Papers 11-21, Center for Economic Studies, U.S. Census Bureau.


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