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Publications

A Dynamic Approach to Estimating Hedonic Prices for Environmental Goods: An Application to Open Space Purchase

If housing markets exhibit slow adjustment to system shocks, then hedonic estimates of the price impact from environmental amenity trends may be time variant. This paper suggests an alternative to the cross-sectional model for estimating hedonic prices using an error correction approach that allows for endogenous environmental quality. The model is applied to data concerning an open space purchase program in Boulder, Colorado, and shows that the economic impact of an open space purchase takes several years to be fully realized. This observation questions using cross-sectional, hedonic models for evaluating willingness to pay for time-trended environmental amenities.

Publication Name
Land Economics
Author
Mary Riddel
Publisher
Madison, WI: University of Wisconsin Press
Page Numbers
434-512
Publication Date
February 01, 2001
Publication Type
Articles
State
Colorado
Keywords
Environmental Benefits, Land Use Planning

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