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Water quality and cottage prices in Ontario

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  • Julia Clapper
  • Steven B. Caudill

Abstract

We use hedonic analysis to show that water clarity has a significant effect on lakefront property values in the Near North Ontario, Canada. In this study, water clarity is measured by Secchi disc reading. Based on two different dependent variables; sales price and sales price per square foot, and the estimation of linear, log--linear and log--log models, we find that water clarity does matter to lakefront property buyers in the Near North, Ontario. In particular, our results indicate that buyers are willing to pay about 2% more for each 1-foot increase in water clarity or Secchi depth. This finding is consistent across all of our specifications.

Suggested Citation

  • Julia Clapper & Steven B. Caudill, 2014. "Water quality and cottage prices in Ontario," Applied Economics, Taylor & Francis Journals, vol. 46(10), pages 1122-1126, April.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:10:p:1122-1126
    DOI: 10.1080/00036846.2013.851778
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    References listed on IDEAS

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    1. Leggett, Christopher G. & Bockstael, Nancy E., 2000. "Evidence of the Effects of Water Quality on Residential Land Prices," Journal of Environmental Economics and Management, Elsevier, vol. 39(2), pages 121-144, March.
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    6. Brookshire, David S & Thayer. Mark A & Tschirhart, John & Schulze, William D, 1985. "A Test of the Expected Utility Model: Evidence from Earthquake Risks," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 369-389, April.
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    Cited by:

    1. Felix Haifeng Liao & Frank M. Wilhelm & Mark Solomon, 2016. "The Effects of Ambient Water Quality and Eurasian Watermilfoil on Lakefront Property Values in the Coeur d’Alene Area of Northern Idaho, USA," Sustainability, MDPI, vol. 8(1), pages 1-12, January.
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    4. Julian D Olden & Mariana Tamayo, 2014. "Incentivizing the Public to Support Invasive Species Management: Eurasian Milfoil Reduces Lakefront Property Values," PLOS ONE, Public Library of Science, vol. 9(10), pages 1-6, October.

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