The impact of wetlands rules on the prices of regulated and proximate houses: a case study
AbstractFederal, state and local wetlands protection laws that restrict landowners' ability to develop their properties in certain ways could decrease the value of the affected properties. However, the regulations could also give benefits to nearby neighbors, who no longer need to worry about increased development in their area. Given that some properties may decline in value while others increase, the impact on individual properties must be determined empirically. ; This study uses a data set from Newton, Massachusetts, to examine the impact of wetlands laws on the regulated properties as well as on proximate properties. Looking at house sales data from 1988 through 2005, the hedonic technique is used to estimate the effect of wetlands regulations on single-family home prices and finds that having wetlands on a property decreases its value by 4 percent relative to non-regulated properties. Homes that are contiguous to regulated houses do not experience any change in price. Thus, it seems unlikely that neighbors are receiving any benefit from knowing that further development is restricted in their immediate vicinity.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Boston in its series New England Public Policy Center Working Paper with number 07-3.
Date of creation: 2007
Date of revision:
Other versions of this item:
- Katherine Kiel, 2007. "The Impact of Wetlands Rules on the Prices of Regulated and Proximate Houses: A Case Study," Working Papers 0707, College of the Holy Cross, Department of Economics.
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-24 (All new papers)
- NEP-ENV-2007-11-24 (Environmental Economics)
- NEP-URE-2007-11-24 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frech, H. III & Lafferty, Ronald N., 1984. "The effect of the California Coastal Commission on housing prices," Journal of Urban Economics, Elsevier, vol. 16(1), pages 105-123, July.
- Doss, Cheryl R. & Taff, Steven J., 1996. "The Influence Of Wetland Type And Wetland Proximity On Residential Property Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
- Lupi, Frank & Graham-Tomasi, Theodore & Taff, Steven J., 1991. "A Hedonic Approach To Urban Wetland Valuation," Staff Papers 13284, University of Minnesota, Department of Applied Economics.
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