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The Demand for Environmental Quality: An Application of Hedonic Pricing in Golf

Author

Listed:
  • Frank F. Limehouse

    (Chicago Census Research Data Center and DePaul University, flimehouse@frbchi.org)

  • Peter C. Melvin

    (Ernst and Young LLP)

  • Robert E. McCormick

    (Clemson University)

Abstract

The analysis uses an exhaustive golf course database that contains over 100 golf course variables on more than 15,000 golf courses in the United States combined with data from the Audubon International Cooperative Sanctuary Program to examine the market setting of environmental certification on golf courses. Using the Rosen (1974) two-stage estimation technique, quality-adjusted structural demand and supply equations for golf are estimated. A standard hedonic pricing model shows a substantial price premium for environmentally certified Audubon International golf courses. Additional results suggest that the increase in marginal benefits of certification is approximately equal to the increase in marginal costs.

Suggested Citation

  • Frank F. Limehouse & Peter C. Melvin & Robert E. McCormick, 2010. "The Demand for Environmental Quality: An Application of Hedonic Pricing in Golf," Journal of Sports Economics, , vol. 11(3), pages 261-286, June.
    • Handle: RePEc:sae:jospec:v:11:y:2010:i:3:p:261-286
    DOI: 10.1177/1527002509337801
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    References listed on IDEAS

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    1. repec:jpe:journl:966 is not listed on IDEAS
    2. Robert McCormick & Robert Tollison, 2010. "Chivalry in golf?," Public Choice, Springer, vol. 142(3), pages 323-334, March.
    3. Randy R. Grant & Brittany Teahan, 2019. "Pricing Footraces in the United States: An Application of Hedonic Pricing to the Running Industry," The American Economist, Sage Publications, vol. 64(2), pages 293-305, October.
    4. Frank Limehouse & Robert McCormick, 2011. "Impacts of Central Business District Location: A Hedonic Analysis of Legal Service Establishments," Working Papers 11-21, Center for Economic Studies, U.S. Census Bureau.
    5. Cicia, Gianni & Caracciolo, Francesco & Del Giudice, Teresa & Sannino, G. & Verneau, Fabio, 2013. "The Role of Sensory Profile in the Extra-Virgin Olive Oil Consumers Choice," 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria 164738, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Frank Limehouse & Michael Maloney & Kurt Rotthoff, 2012. "Peak-Load Versus Discriminatory Pricing: Evidence from the Golf Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(3), pages 151-165, May.
    7. Cathy A. Enz & Linda Canina, 2017. "Competitive pricing in the golf industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(2), pages 139-153, April.

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