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Market structure and environmental amenities in hedonic pricing of rural cottages

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Author Info
Mollard, A.
Rambonilaza, M.
Vollet, D.
Abstract

Site-specific characteristics are attributes of tourism services for consumers and a factor influencing their costs and quality for producers. These services are a fine illustration of territorial rents. Using estimates from hedonic price equations, we test the role of environmental/territorial variables as services differentiation tools in the context of a non-competitive market, and recover the value of territorial rent generated by tourism managers' strategies. Two territories of reference are chosen, one currently benefiting from the renewed interest of the public, and a usual tourist destination. The results of a comparative analysis suggest that tourists' preferences for new destinations, combined with firms' strategies generate some catching up effect by emerging territories.

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Paper provided by Grenoble Applied Economics Laboratory (GAEL) in its series Working Papers with number 200427.

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Date of creation: 2004
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Handle: RePEc:gbl:wpaper:200427

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Related research
Keywords: ENVIRONMENTAL VALUATION; HEDONIC METHOD; SERVICE DIFFERENTIATION; TOURISM;

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Find related papers by JEL classification:
Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply (the Commons)
Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns

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  1. Smith, V. Kerry & Poulos, Christine & Kim, Hyun, 2002. "Treating open space as an urban amenity," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 107-129, February. [Downloadable!] (restricted)
  2. Feenstra, R.C., 1995. "Exact Hedonic Price Indexes," Department of Economics 95-11, California Davis - Department of Economics.
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  3. Laura O. Taylor & V. Kerry Smith, 2000. "Environmental Amenities as a Source of Market Power," Land Economics, University of Wisconsin Press, vol. 76(4), pages 550-568. [Downloadable!] (restricted)
  4. Parsons, George R., 1990. "Hedonic prices and public goods: An argument for weighting locational attributes in hedonic regressions by lot size," Journal of Urban Economics, Elsevier, vol. 27(3), pages 308-321, May. [Downloadable!] (restricted)
  5. Cheshire, Paul & Sheppard, Stephen, 1998. "Estimating the Demand for Housing, Land, and Neighbourhood Characteristics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 357-82, August.
  6. Bastian, Chris T. & McLeod, Donald M. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 2002. "Environmental amenities and agricultural land values: a hedonic model using geographic information systems data," Ecological Economics, Elsevier, vol. 40(3), pages 337-349, March. [Downloadable!] (restricted)
  7. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November. [Downloadable!] (restricted)
  8. Philippe Le Goffe, 2000. "Hedonic Pricing of Agriculture and Forestry Externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(4), pages 397-401, April. [Downloadable!] (restricted)
  9. Cassel, Eric & Mendelsohn, Robert, 1985. "The choice of functional forms for hedonic price equations: Comment," Journal of Urban Economics, Elsevier, vol. 18(2), pages 135-142, September. [Downloadable!] (restricted)
  10. Mark Delucchi & Donald McCubbin & James Murphy, 2002. "The Health and Visibility Cost of Air Pollution: A Comparison of Estimation Methods," Institute of Transportation Studies, Working Paper Series UCD-ITS-REP-02-08, Institute of Transportation Studies, UC Davis. [Downloadable!]
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