Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?

Journal of Environmental Economics and Management

Volumn 60, Issue 3, 2010, Pages 145-160

  Kuminoff, Nicolai V ^a   Parmeter, Christopher F ^b   Pope, Jaren C ^c  

^a ARIZONA STATE UNIVERSITY   (United States)

^b UNIVERSITY OF MIAMI   (United States)

^c BRIGHAM YOUNG UNIVERSITY   (United States)

Author keywords

Functional form; Hedonic; Omitted variable; Quasi experiment

Indexed keywords

ECONOMIC CONSEQUENCES; ECONOMIC VALUES; ENVIRONMENTAL AMENITIES; ENVIRONMENTAL SERVICES; EXPERIMENTAL IDENTIFICATION; FIXED EFFECTS; FLEXIBLE FRAMEWORK; FUNCTIONAL FORMS; HEDONIC; HEDONIC MODEL; HOUSING MARKETS; MONTE CARLO STUDY; OMITTED VARIABLE; PRICE FUNCTION; PROPERTY VALUE; PUBLIC GOODS; QUASI-EXPERIMENT; TEMPORAL CONTROLS; WILLINGNESS TO PAY;

ECONOMICS; FERRY BOATS; MONTE CARLO METHODS;

EXPERIMENTS;

ACCURACY ASSESSMENT; AMENITY; ECOSYSTEM SERVICE; ENVIRONMENTAL ECONOMICS; EXPERIMENTAL STUDY; HEDONIC ANALYSIS; HOUSING MARKET; MONTE CARLO ANALYSIS; PUBLIC GOODS; URBAN AREA; WILLINGNESS TO PAY;

EID: 77957749758     PISSN: 00950696     EISSN: 10960449     Source Type: Journal    
DOI: 10.1016/j.jeem.2010.06.001     Document Type: Article

References (34)

1. Anselin L. Spatial Econometrics: Methods and Models 1988, Kluwer Academic, Dordrecht.
2. H.S. Banzhaf, Hedonic pricing in realistic urban structures, or what if tiebout called and nobody sorted? Mimeo, 2003.
3. Banzhaf S.H., Smith V.K. Meta-analysis in model implementation: choice sets and the valuation of air quality improvements. J. Appl. Econometrics 2007, 22:1013-1031.
4. Banzhaf H.S., Walsh R.P. Do people vote with their feet? An empirical test of Tiebout's mechanism. Amer. Econ. Rev. 2008, 98:843-863.
5. Bartik T.J. Measuring the benefits of amenity improvements in hedonic price models. Land Econ. 1988, 64:172-183.
6. Bayer P., Keohane N., Timmins C. Migration and hedonic valuation: the case of air quality. J. Environ. Econ. Manage. 2009, 58:1-14.
7. Brookshire D.S., Thayer M.A., Tschirhart J., Schulze W.D. A test of the expected utility model: evidence from earthquake risks. J. Polit. Economy 1985, 93:369-389.
8. Chay K.Y., Greenstone M. Does air quality matter? Evidence from the housing market. J. Polit. Economy 2005, 113:376-424.
9. Cropper M.L., Deck L.B., McConnell K.E. On the choice of functional form for hedonic price functions. Rev. Econ. Statist. 1988, 70:668-675.
10. Costa D.L., Kahn M.E. The rising price of nonmarket goods. Amer. Econ. Rev. 2003, 93:227-232.
11. Davis L. The effect of health risk on housing values: evidence from a cancer cluster. Amer. Econ. Rev. 2004, 94:1693-1704.
12. Ekeland I., Heckman J.J., Nesheim L. Identification and estimation of hedonic models. J. Polit. Economy 2004, 112:S60-S109.
13. Epple D. Hedonic prices and implicit markets: estimating demand and supply functions for differentiated products. J. Polit. Economy 1987, 95:59-80.
14. Freeman A.M. The Measurement of Environmental and Resource Values 1993, Resources for the Future, Washington, DC.
15. Fulcher C.M. Spatial Aggregation and Prediction in the Hedonic Model, Economics 2003, North Carolina State University, Raleigh.
16. Kiel K., McClain K.T. House prices during siting decision stages: the case of an incinerator from rumor through operation. J. Environ. Econ. Manage. 1995, 28:241-255.
17. A.H. Klaiber, V.K. Smith, Evaluating Rubin's causal model for measuring the capitalization of environmental amenities, NBER Working Paper 14957, 2009.
18. Kunzli N., Kaiser R., Medina S., Studnicka M., Chanel O., Filliger P., Herry M., Horak F., Puybonnieux-Texier V., Quenel P., Schneider J., Seethaler R., Vergnaud J.C., Sommer H. Public-health impact of outdoor and traffic-related air pollution: a European assessment. Lancet 2000, 356:795-801.
19. Kuminoff N.V., Jarrah A.S. A new approach to computing hedonic equilibria and investigating the properties of locational sorting models. J. Urban Econ. 2010, 67:322-335.
20. N.V. Kuminoff, J.C. Pope, Hedonic equilibria, land value capitalization, and the willingness to pay for public goods, Mimeo, 2010.
21. Leggett C.G., Bockstael N.E. Evidence of the effects of water quality on residential land prices. J. Environ. Econ. Manage. 2000, 39:121-144.
22. Linden L., Rockoff J.E. Estimates of the Impact of crime risk on property values from Megan's laws. Amer. Econ. Rev. 2008, 98:1103-1127.
23. McCluskey J.J., Rausser G.C. Stigmatized asset value: is it temporary or long-term?. Rev. Econ. Statist. 2003, 85:276-285.
24. Nechyba, J.T., Walsh R.L. Urban sprawl. J. Econ. Perspect. 2004, 18:177-200.
25. Palmquist R.B. Property value models. Handbook of Environmental Economics 2005, vol. 2. North-Holland Press, Amsterdam.
26. Phaneuf D.J., Smith V.K., Palmquist R.B., Pope J.C. Integrating property value and local recreation models to value ecosystem services in urban watersheds. Land Econ. 2008, 84:551-572.
27. Pope J.C. Buyer information and the hedonic: the impact of a seller disclosure on the implicit price for airport noise. J. Urban Econ. 2008, 63:498-516.
28. Rosen S. Hedonic prices and implicit markets: product differentiation in pure competition. J. Polit. Economy 1974, 82:34-55.
29. Rosen S. Markets and diversity. Amer. Econ. Rev. 2002, 92:1-15.
30. Smith V.K., Huang J.-C. Can markets value air quality? A meta-analysis of hedonic property value models. J. Polit. Economy 1995, 130:209-227.
31. Smith V.K., Poulos C., Kim H. Treating open space as an urban amenity. Resources Energy Econ. 2002, 24:107-129.
32. Taylor L.O. The hedonic method. A Primer on Nonmarket Valuation 2003, Kluwer Academic Publishers, Netherlands. P.A. Champ, K.J. Boyle, T.C. Brown (Eds.).
33. Tinbergen J. On the theory of income distribution. Selected Papers of Jan Tinbergen 1959, North-Holland, Amsterdam. L.H. Klaassen, L.M. Koych, H.J. Witteveen (Eds.).
34. Walsh R.L. Endogenous open space amenities in a locational equilibrium. J. Urban Econ. 2007, 61:319-344.