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Market structure and environmental amenities in hedonic pricing of rural cottages

  • Mollard, A.
  • Rambonilaza, M.
  • Vollet, D.

Site-specific characteristics are attributes of tourism services for consumers and a factor influencing their costs and quality for producers. These services are a fine illustration of territorial rents. Using estimates from hedonic price equations, we test the role of environmental/territorial variables as services differentiation tools in the context of a non-competitive market, and recover the value of territorial rent generated by tourism managers' strategies. Two territories of reference are chosen, one currently benefiting from the renewed interest of the public, and a usual tourist destination. The results of a comparative analysis suggest that tourists' preferences for new destinations, combined with firms' strategies generate some catching up effect by emerging territories.

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Paper provided by Grenoble Applied Economics Laboratory (GAEL) in its series Working Papers with number 200427.

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Date of creation: 2004
Date of revision:
Handle: RePEc:gbl:wpaper:200427
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  1. A G Phipps, 1987. "Households' Utilities and Hedonic Prices for Inner-City Homes," Environment and Planning A, , vol. 19(1), pages 59-80, January.
  2. Smith, V. Kerry & Poulos, Christine & Kim, Hyun, 2002. "Treating open space as an urban amenity," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 107-129, February.
  3. Delucchi, Mark & Murphy, James & McCubbin, Donald, 2002. "The Health and Visibility Cost of Air Pollution: A Comparison of Estimation Methods," Institute of Transportation Studies, Working Paper Series qt03s2x9xb, Institute of Transportation Studies, UC Davis.
  4. Feenstra, R.C., 1995. "Exact Hedonic Price Indexes," Papers 95-11, California Davis - Institute of Governmental Affairs.
  5. Laura O. Taylor & V. Kerry Smith, 2000. "Environmental Amenities as a Source of Market Power," Land Economics, University of Wisconsin Press, vol. 76(4), pages 550-568.
  6. Bastian, Chris T. & McLeod, Donald M. & Germino, Matthew J. & Reiners, William A. & Blasko, Benedict J., 2002. "Environmental amenities and agricultural land values: a hedonic model using geographic information systems data," Ecological Economics, Elsevier, vol. 40(3), pages 337-349, March.
  7. Cassel, Eric & Mendelsohn, Robert, 1985. "The choice of functional forms for hedonic price equations: Comment," Journal of Urban Economics, Elsevier, vol. 18(2), pages 135-142, September.
  8. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November.
  9. Cheshire, Paul & Sheppard, Stephen, 1998. "Estimating the Demand for Housing, Land, and Neighbourhood Characteristics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 357-82, August.
  10. Parsons, George R., 1990. "Hedonic prices and public goods: An argument for weighting locational attributes in hedonic regressions by lot size," Journal of Urban Economics, Elsevier, vol. 27(3), pages 308-321, May.
  11. Philippe Le Goffe, 2000. "Hedonic Pricing of Agriculture and Forestry Externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(4), pages 397-401, April.
  12. A G Phipps, 1987. "Households' utilities and hedonic prices for inner-city homes," Environment and Planning A, Pion Ltd, London, vol. 19(1), pages 59-80, January.
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