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Community Valuations of Environmental Quality in Coastal Lakes: Lake Illawarra Case Study

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  • Ann Hodgkinson
  • Abbas Valadkhani

Abstract

This is the first Australian study to apply the hedonic pricing method to value environmental quality of an urban water body. It demonstrates the technique using a case study of a degraded urban lake that is currently undergoing a programme of water quality restoration and foreshore improvements. The results show that the community places significant value on proximity to the lake and on waterfront location. A range of other data was also generated that adds to the usefulness of this approach for general planning purposes. It is suggested that this technique would be a useful tool to aid in the allocation of public funds among competing environmental improvement projects. Copyright (c) 2009 The Economic Society of Australia.

Suggested Citation

  • Ann Hodgkinson & Abbas Valadkhani, 2009. "Community Valuations of Environmental Quality in Coastal Lakes: Lake Illawarra Case Study," Economic Papers, The Economic Society of Australia, vol. 28(2), pages 155-168, June.
  • Handle: RePEc:bla:econpa:v:28:y:2009:i:2:p:155-168
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    References listed on IDEAS

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    Cited by:

    1. Neelawala, Prasad & Wilson, Clevo & Athukorala, Wasantha, 2013. "The impact of mining and smelting activities on property values: a study of Mount Isa city, Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(1), March.
    2. Jacqueline Robinson, 2013. "Valuing environmental attributes of MPAs in the market price of real estate, Moreton Bay, Queensland, Australia," Discussion Papers Series 496, School of Economics, University of Queensland, Australia.

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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