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On Estimating Household Demand For Outdoor Recreation From Property Values: An Exploration

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  • Edwards, Steven F.

Abstract

This paper explores how hedonic price analysis might be used to estimate the surplus benefits of local outdoor recreation when distance to the recreational site is captured in property values. The model is characterized by the endogenous choice of distance to a local recreational area by households in coastal property markets and by the capitalization of proximity in property values. Equilibrium occurs when the reduction in the cost of a property due to a marginal increase in distance to the recreational area equals the associated loss in recreational surplus resulting from increased travel costs. The theoretical model is applied in an exploratory analysis of the "demand" for distance to the nearest public beach from which total surplus benefits are estimated.

Suggested Citation

  • Edwards, Steven F., 1989. "On Estimating Household Demand For Outdoor Recreation From Property Values: An Exploration," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-9, October.
    • Handle: RePEc:ags:nejare:28865
    DOI: 10.22004/ag.econ.28865
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    References listed on IDEAS

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    8. Edwards, Steven F. & Anderson, Glen D., 1984. "Land Use Conflicts in the Coastal Zone: An Approach for the Analysis of the Opportunity Costs of Protecting Coastal Resources," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-9, April.
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    Cited by:

    1. Jeffrey J. Pompe & James R. Rinehart, 1995. "The Value Of Beach Nourishment To Property Owners: Storm Damage Reduction Benefits," The Review of Regional Studies, Southern Regional Science Association, vol. 25(3), pages 271-286, Winter.
    2. Tom Gillespie & Stephen Hynes & Ronan C Lyons, 2018. "Picture or Playground: Valuing Coastal Amenities," Trinity Economics Papers tep0518, Trinity College Dublin, Department of Economics, revised Mar 2019.

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