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Integrating Property Value and Local Recreation Models to Value Ecosystem Services in Urban Watersheds

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  • Daniel J. Phaneuf
  • V. Kerry Smith
  • Raymond B. Palmquist
  • Jaren C. Pope

Abstract

This paper outlines a new revealed preference method to estimate the effects of changes in land use associated with residential development on water quality and the implied ecosystem services at the watershed level. The analysis integrates data describing several types of behavior and uses hedonic property value and random utility models for local recreation to consider the multiple impacts of ecosystem services on household well-being. Several policy examples drawn from changes in Wake County, North Carolina, are used to demonstrate how spatial differences in residential development are reflected in the model’s estimates of the economic costs of deterioration in watershed quality.

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File URL: http://le.uwpress.org/cgi/reprint/84/3/361
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 84 (2008)
Issue (Month): 3 ()
Pages: 361-381

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Handle: RePEc:uwp:landec:v:84:y:2008:i:3:p:361-381

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Web page: http://le.uwpress.org/

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Cited by:
  1. Melstrom, Richard T. & Lupi, Frank, 2013. "Using a Control Function to Resolve the Travel Cost Endogeneity Problem in Recreation Demand Models," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 149732, Agricultural and Applied Economics Association.
  2. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
  3. Neuman, Amber D. & Belcher, Ken W., 2011. "The contribution of carbon-based payments to wetland conservation compensation on agricultural landscapes," Agricultural Systems, Elsevier, Elsevier, vol. 104(1), pages 75-81, January.
  4. V. Kerry Smith & Carlos Valcarcel Wolloh, 2012. "Has Surface Water Quality Improved Since the Clean Water Act?," NBER Working Papers 18192, National Bureau of Economic Research, Inc.

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