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Valuing Environmental Quality: A Space-Based Strategy

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  • David E. Clark

    () (Department of Economics, Marquette University
    U.S. Department of Hoursing and Urban Development)

Abstract

This paper develops and applies a space-based strategy for overcoming the general problem of getting at the demand for non-market goods. It focuses specifically on evaluating one form of environmental quality, distance from EPA designated environmental hazards, via the single-family housing market in the Puget Sound region of Washington State. A spatial two stage hedonic price analysis is used to: (1) estimate the marginal implicit price of distance from air release sites, hazardous waste generators, hazardous waste handlers, superfund sites, and toxic release sites; and (2) estimate a series of demand functions describing the relationship between the price of distance and the quantity consumed. The analysis, which represents a major step forward in the valuation of environmental quality, reveals that the information needed to identify second-stage demand functions is hidden right in plain site � hanging in the aether of the regional housing market.

Suggested Citation

  • David E. Clark, 2007. "Valuing Environmental Quality: A Space-Based Strategy," Working Papers and Research 0702, Marquette University, Center for Global and Economic Studies and Department of Economics.
  • Handle: RePEc:mrq:wpaper:0702
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    2. Bauer, Thomas K. & Braun, Sebastian & Kvasnicka, Michael, 2013. "Distant Event, Local Effects? Fukushima and the German Housing Market," Ruhr Economic Papers 433, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Qin Fan & J. Andrew Hansz & Xiaoming Yang, 2016. "The Pricing Effects of Open Space Amenities," The Journal of Real Estate Finance and Economics, Springer, vol. 52(3), pages 244-271, April.
    4. Jeffrey P. Cohen & Robert G. Cromley & Kevin T. Banach, 2015. "Are Homes Near Water Bodies and Wetlands Worth More or Less? An Analysis of Housing Prices in One Connecticut Town," Growth and Change, Wiley Blackwell, vol. 46(1), pages 114-132, March.
    5. Millimet, Daniel L., 2013. "Environmental Federalism: A Survey of the Empirical Literature," IZA Discussion Papers 7831, Institute for the Study of Labor (IZA).
    6. Anping Chen & Marlon Boarnet & Mark Partridge & Wenjie Wu & Guanpeng Dong, 2014. "Valuing The “Green” Amenities In A Spatial Context," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 569-585, September.
    7. Thomas K. Bauer & Sebastian Braun & Michael Kvasnicka, 2013. "Distant Event, Local Effects? Fukushima and the German Housing Market," Ruhr Economic Papers 0433, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Karima Kourtit & Peter Nijkamp & Mark D. Partridge & Marlon G. Boarnet, 2013. "The declining role of the automobile and the re-emergence of place in urban transportation: The past will be prologue," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(2), pages 237-253, June.
    9. Stephens, Heather & Partridge, Mark, 2012. "Lake Amenities, Environmental Degradation, and Great Lakes Regional Growth," MPRA Paper 43903, University Library of Munich, Germany.
    10. Anping Chen & Marlon Boarnet & Mark Partridge & Siqi Zheng & Weizeng Sun & Rui Wang, 2014. "Land Supply And Capitalization Of Public Goods In Housing Prices: Evidence From Beijing," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 550-568, September.
    11. Aaron Swoboda & Tsegaye Nega & Maxwell Timm, 2015. "Hedonic Analysis Over Time And Space: The Case Of House Prices And Traffic Noise," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 644-670, September.
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    13. Sun, Weizeng & Zheng, Siqi & Wang, Rui, 2015. "The capitalization of subway access in home value: A repeat-rentals model with supply constraints in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 104-115.
    14. Yu Xiao, 2011. "Local Economic Impacts Of Natural Disasters," Journal of Regional Science, Wiley Blackwell, vol. 51(4), pages 804-820, October.
    15. Mark D. Partridge & Dan S. Rickman, 2012. "Integrating Regional Economic Development Analysis and Land Use Economics," Economics Working Paper Series 1203, Oklahoma State University, Department of Economics and Legal Studies in Business.

    More about this item

    Keywords

    Environmental Quality; Hedonic Price Analysis;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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