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The valuation of off-site ecosystem service flows: Deforestation, erosion and the amenity value of lakes in Prescott, Arizona

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  • Yoo, James
  • Simonit, Silvio
  • Connors, John P.
  • Kinzig, Ann P.
  • Perrings, Charles

Abstract

One of the most important services provided by forests is the control of erosion. We investigated the value of forest cover in protecting water quality in five urban lakes around Prescott, AZ. We first estimated the role of forest cover in regulating sediment loadings into each lake via a sediment delivery model. We then used 8301 single-family residential property transactions that occurred between 2002 and 2005 in Prescott, AZ, to estimate a hedonic price function. This yielded an estimate of the marginal willingness-to-pay (MWTP) for avoiding 1t of sediment per lake-acre, from which we were able to infer the marginal willingness to pay for the erosion control services associated with a 10% change in current canopy cover. We found that the marginal value of the erosion control services of forest cover varies widely across the watersheds depending on the accessibility of affected lakes, the current level of canopy cover, and the number and value of affected residential properties among other factors.

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  • Yoo, James & Simonit, Silvio & Connors, John P. & Kinzig, Ann P. & Perrings, Charles, 2014. "The valuation of off-site ecosystem service flows: Deforestation, erosion and the amenity value of lakes in Prescott, Arizona," Ecological Economics, Elsevier, vol. 97(C), pages 74-83.
    • Handle: RePEc:eee:ecolec:v:97:y:2014:i:c:p:74-83
    DOI: 10.1016/j.ecolecon.2013.11.001
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    5. Caroline King-Okumu, 2018. "Valuing Environmental Benefit Streams in the Dryland Ecosystems of Sub-Saharan Africa," Land, MDPI, vol. 7(4), pages 1-23, November.
    6. Yoo, James & Ready, Richard, 2016. "The impact of agricultural conservation easement on nearby house prices: Incorporating spatial autocorrelation and spatial heterogeneity," Journal of Forest Economics, Elsevier, vol. 25(C), pages 78-93.
    7. Matthew Gnagey & Therese Grijalva, 2018. "The impact of trails on property values: a spatial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 73-97, January.
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    11. Matthew T. Heberling & Dennis Guignet & Michael Papenfus, 2022. "Water Quality and Hedonic Models: A MetaAnalysis of Commodity, Market, and Methodological Characteristics," Working Papers 22-06, Department of Economics, Appalachian State University.

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