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How to Measure Scope Variables when no Metrics Exist : Application to Landscape Quality Measurement and Hedonic Price Evaluation

  • Nils Soguel
  • Alexandre Tangerini
  • Jacques Pictet

Landscape is an example of a non-market good where no metrics exist to measure its quality. The paper proposes an original methodology to nevertheless estimate scope variables in those circumstances, allowing then to better test if people’s willingnesstopay for such good is sensitive to the scope. The methodology is based on techniques developed in the context of multicriteria decision analysis. It is applied to assess the quality of the landscape of several Swiss alpine resorts. This assessment is then used as an explanatory variable in a hedonic price function to explain the rent of apartments and to derive an implicit price of the landscape quality.

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Article provided by Dalloz in its journal Revue d'économie politique.

Volume (Year): 117 (2007)
Issue (Month): 5 ()
Pages: 827-841

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Handle: RePEc:cai:repdal:redp_175_0827
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