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Lots of value? A spatial hedonic approach to water quality valuation

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  • Janne Artell

Abstract

Very few studies have addressed the effects of water quality on recreational values in a hedonic property price setting. This study elicits the value of improved water quality capitalised in Finnish recreational property prices adjacent to the Baltic Sea, lakes and rivers. In addition, spatial econometric methods are employed to address the spatial autocorrelation found in data. An expert-determined, water body specific water quality index that describes the usability status of the water is used instead of more specific, but also more problematic, water quality indicators. The study finds that water usability has a positive effect on property prices, with weak suggestions on non-linearity.

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  • Janne Artell, 2014. "Lots of value? A spatial hedonic approach to water quality valuation," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(6), pages 862-882, June.
    • Handle: RePEc:taf:jenpmg:v:57:y:2014:i:6:p:862-882
    DOI: 10.1080/09640568.2013.772504
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    4. Mahesh, Ramachandran, 2015. "Validating Spatial Hedonic Modeling with a Behavioral Approach: Measuring the Impact of Water Quality Degradation on Coastal Housing Markets," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205664, Agricultural and Applied Economics Association.
    5. Van Berkel, Derek B. & Tabrizian, Payam & Dorning, Monica A. & Smart, Lindsey & Newcomb, Doug & Mehaffey, Megan & Neale, Anne & Meentemeyer, Ross K., 2018. "Quantifying the visual-sensory landscape qualities that contribute to cultural ecosystem services using social media and LiDAR," Ecosystem Services, Elsevier, vol. 31(PC), pages 326-335.
    6. Okmyung Bin & Jeffrey Czajkowski & Jingyuan Li & Gabriele Villarini, 2017. "Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 319-341, October.
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