Modeling the Property Price Impact of Water Quality in 14 Chesapeake Bay Counties

Ecological Economics

Volumn 135, Issue , 2017, Pages 103-113

  Walsh, Patrick ^a   Griffiths, Charles ^b   Guignet, Dennis ^b   Klemick, Heather ^b  

^a LANDCARE RESEARCH   (New Zealand)

^b U S ENVIRONMENTAL PROTECTION AGENCY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

COST-BENEFIT ANALYSIS; ENVIRONMENTAL ECONOMICS; ENVIRONMENTAL MODELING; ENVIRONMENTAL VALUES; EXPLORATION; HEDONIC ANALYSIS; PRICE DYNAMICS; PROPERTY MARKET; WATER QUALITY;

CHESAPEAKE BAY; MARYLAND; UNITED STATES;

EID: 85011288767     PISSN: 09218009     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ecolecon.2016.12.014     Document Type: Article

References (56)

1. Anselin, L., Le Gallo, J., Interpolation of air quality measures in hedonic house price models: spatial aspects. Spat. Econ. Anal. 1:1 (2006), 31–51.
2. Anselin, L., Lozano-Gracia, N., Spatial Hedonic Models. Arizona State University Working Paper 2008-02, 2008, Center for Geospatial Analysis and Computation, GeoDa.
3. Appraisal Foundation, Identifying comparable properties. APB Valuation Advisory #4, the Appraisal Foundation Appraisal Practices Board, August 14, 2013, 2013.
4. Ara, S., “The Influence of Water Quality on the Demand for Residential Development Around Lake Erie.” Doctoral Dissertation, Department of Agricultural, Environmental & Development Economics. 2007, Ohio State University, Columbus, OH.
5. Artell, J., Ahtianinen, H., Pouta, E., Subjective vs. objective measures in the valuation of water quality. J. Environ. Manag. 130:30 (2013), 288–296.
6. Ateya, A., Ferreira, S., Knesel, W., Forgetting the flood?: an analysis of the flood risk discount over time. Land Econ. 89:4 (2013), 577–598.
7. Besner, C., A spatial autoregressive specification with a comparable sales weighting scheme. J. Real Estate Res. 24:2 (2002), 193–211.
8. Bin, O., Czajkowski, J., The impact of technical and non-technical measures of water quality on coastal waterfront property values in South Florida. Mar. Resour. Econ. 28:1 (2013), 43–63.
9. Bin, O., Czajkowski, J., Li, J., Villarini, G., Housing market fluctuations and the implicit price of water quality: empirical evidence from a South Florida housing market. Environ. Resour. Econ., 2016, 10.1007/s10640-016-0020-8.
10. Boyle, K.J., Taylor, L.O., Does the measurement of property and structural characteristics affect estimated implicit prices for environmental amenities in a hedonic model. J. Real Estate Financ. Econ. 22:2/3 (2001), 303–318.
11. Boyle, K.J., Lewis, L., Pope, J.C., Zabel, J.E., Valuation in a bubble: hedonic modeling pre- and post-housing market collapse. AERE Newsl. 32:2 (2012), 24–31.
12. Boyle, K.J., Poor, P.J., Taylor, L.O., Estimating the demand for protecting freshwater lakes from eutrophication. Am. J. Agric. Econ. 81:5 (1999), 1118–1122.
13. Brashares, E., Estimating the Instream Value of Lake Water Quality in Southeast Michigan. 1985 (University of Michigan. Ph.D).
14. Brown, G.M., Polakowski, H.O., Economic valuation of shoreline. Rev. Econ. Stat. 59:3 (1977), 272–278.
15. Chen, J., Hao, Q., The impacts of distance to CBD on housing prices in Shanghai: a hedonic analysis. J. Chin. Econ. Bus. Stud. 6:3 (2008), 291–302.
16. Cropper, M.L., Deck, L.B., McConnell, K.E., On the choice of functional form for hedonic price functions. Rev. Econ. Stat. 70:4 (1988), 668–675.
17. David, E.L., Lakeshore property values: a guide to public investment in recreation. Water Resour. Res. 4:4 (1968), 697–707.
18. D'Acci, L., Monetary, subjective and quantitative approaches to assess urban quality of life and pleasantness in cities (Hedonic price, willingness-to-pay, positional value, life satisfaction, isobenefit lines)". Soc. Indic. Res. 115:2 (2014), 531–559.
19. Dornbusch, D.M., Barrager, S.M., Benefit of Water Pollution Control on Property Values. 1973, US Environmental Protection Agency.
20. EPA, Ambient water quality criteria for dissolved oxygen, water clarity and chlorophyll a for the Chesapeake Bay and its tidal tributaries. Office of Water, 2003, EPA, Annapolis MD (903-R-03-002).
21. EPA, Ambient water quality criteria for dissolved oxygen, water clarity and chlorophyll a for the Chesapeake Bay and its tidal tributaries 2007 chlorophyll criteria addendum. Chesapeake Bay Program, 2007, EPA, Annapolis (903-R-07-005).
22. Epp, D.J., Al-Ani, K.S., The effect of water quality on rural nonfarm residential property values. Am. J. Agric. Econ. 61:3 (1979), 529–534.
23. Feenberg, D., Mills, E., Measuring the Benefits of Water Pollution Abatement. 1980, Academic Press, New York.
24. Gibbs, J.P., Halstead, J.M., Boyle, K.J., An hedonic analysis of the effects of lake water clarity on New Hampshire lakefront properties. Agric. Resour. Econ. Rev. 31:1 (2002), 39–46.
25. Griffiths, C., Klemick, H., Massey, M., Moore, C., Newbold, S., Simpson, D., Walsh, P., Wheeler, W., U.S. Environmental Protection Agency valuation of surface water quality improvements. Rev. Environ. Econ. Policy, 2012.
26. Haninger, K., Ma, L., Timmins, C., The value of brownfield remediation. NBER Working Paper No. 20296, July 2014, 2014.
27. Kelejian, H.H., Prucha, I.R., Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances. J. Econ. 157:1 (2010), 53–67.
28. Klemick, H., Griffiths, C., Guignet, D., Walsh, P.J., Improving water quality in an iconic estuary: an internal meta-analysis of property value impacts around the Chesapeake Bay. Environ. Resour. Econ., 2016, 1–28, 10.1007/s10640-016-0078-3.
29. Kuminoff, N.V., Pope, J.C., Do “capitalization effects” for public goods reveal the public's willingness to pay?. Int. Econ. Rev. 55:4 (2014), 1227–1250.
30. Kuminoff, N.V., Parmeter, C.F., Pope, J.C., Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?. J. Environ. Econ. Manag. 60:3 (2010), 145–160.
31. Kummerow, M., Galfalvy, H., Error trade-offs in selection of comparable sales for residential valuations. Wang, K., Wolverton, M.L., (eds.) Appearing in Real Estate Valuation Theory Volume 8 of the Series Research Issues in Real Estate, 2002, 105–131.
32. Kutner, M.H., Nachtsheim, C.J., Neter, J., Applied Linear Regression Models. fourth ed., 2004, McGraw-Hill/Irwin, Chicago, Il.
33. Landry, C.E., Hindsley, P., Valuing beach quality with hedonic property models. Land Econ. 87:1 (2011), 92–108.
34. Lansford, N.H., Jones, L.L., Marginal price of lake recreation and aesthetics: an hedonic approach. J. Agric. Appl. Econ. 27:1 (1995), 212–223.
35. Leggett, C.G., Bockstael, N.E., Evidence of the effects of water quality on residential land prices. J. Environ. Econ. Manag. 39:2 (2000), 121–144.
36. Lentz, G.H., Wang, K., Residential appraisal and the lending process: a survey of issues. J. Real Estate Res. 15:1/2 (1998), 11–39.
37. LeSage, J., Pace, R.K., Introduction to Spatial Econometrics. 2009, Chapman & Hall/CRC Press, Boca Raton, Florida.
38. Lueung, C.K.Y., Wong, K.S.K., Cheung, P.W.Y., On the stability of the implicit prices of housing attributes: a dynamic theory and some evidence. Int. R. Estate Rev. 10:2 (2007), 66–93.
39. MD DNR, Eyes on the Bay — Monitoring Stories. 2013, Maryland Department of Natural Resources, Annapolis http://mddnr.chesapeakebay.net/eyesonthebay/Publications.cfm (Accessed March 11, 2013).
40. Mendelsohn, R., Hellerstein, D., Huguenin, M., Unsworth, R., Brazee, R., Measuring hazardous waste damages with panel models. J. Environ. Econ. Manag. 22:3 (1992), 259–271.
41. Michael, H.J., Water Quality Affects Property Prices: A case Study of Selected Maine Lakes. Miscellaneous Report 398, Maine Agricultural and Forest Experiment Station, 1996, University of Maine.
42. Michael, H.J., Boyle, K.J., Bouchard, R., Does the measurement of environmental quality affect implicit prices estimated from hedonic models?. Land Econ. 76:2 (2000), 283–298.
43. Netusil, N.R., The effect of environmental zoning and amenities on property values: Portland Oregon. Land Econ. 81:2 (2005), 227–246.
44. Netusil, N.R., Kincaid, M., Chang, H., Valuing water quality in urban watersheds: a comparative analysis of Johnson Creek, Oregon, and Burnt Bridge Creek, Washington. Water Resour. Res. 50:5 (2014), 4254–4268.
45. O'Brien, A caution regarding rules of thumb for variance inflation factors. Qual. Quant. 41:5 (2007), 673–690.
46. Palmquist, R.B., Fulcher, C.M., The economic valuation of shoreline: 30 years later. Halvorsen, R., Layton, D.F., (eds.) Explorations in Environmental and Natural Resource Economics: Essays in Honor of Gardner M. Brown, Jr, 2006, Edward Elgar Publishing, Inc., Northampton, Ma.
47. Poor, P.J., Boyle, K.J., Taylor, L.O., Bouchard, R., Objective versus subjective measures of water clarity in hedonic property value models. Land Econ. 77:4 (2001), 482–493.
48. Poor, P.J., Pessagno, K.L., Paul, R.W., Exploring the hedonic value of ambient water quality: a local watershed-based study. Ecol. Econ. 60:4 (2007), 797–806.
49. Rosen, S., Hedonic prices and implicit markets: product differentiation in pure competition. J. Polit. Econ. 82:1 (1974), 34–55.
50. Shimizu, C., Nishimura, K.G., Pricing structure in Tokyo Metropolitan land markets and its structural changes: pre-bubble, bubble, and post-bubble periods. J. Real Estate Financ. Econ. 35:4 (2007), 475–496.
51. Smith, V.K., Huang, J.-C., Can markets value air quality? A meta-analysis of hedonic property value models. J. Polit. Econ. 103:1 (1995), 209–227.
52. Taylor, L.O., Smith, V.K., Environmental amenities as a source of market power. Land Econ. 76:4 (2000), 550–568.
53. Vandell, K.D., Optimal comparable selection and weighting in real property valuation. AREUEA J. 19:2 (1991), 213–239.
54. Walsh, P.J., Milon, J.W., Scrogin, D.O., The property-price effects of abating nutrient pollutants in urban housing markets. Thurston, H., (eds.) Economic Incentives for Stormwater Control, 2011, CRC Press, 127–145.
55. Walsh, P.J., Milon, J.W., Scrogin, D.O., The spatial extent of water quality benefits in urban housing markets. Land Econ. 87:4 (2011), 628–644.
56. Young, C.E., Perceived water quality and the value of seasonal homes. Water Resour. Bull. 20:2 (1984), 163–166.