Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations

Earnhart, Dietrich

doi:10.2307/3146977

Cited by 148 publications

(109 citation statements)

References 28 publications

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“…It is further interesting to observe that natural areas with water and especially forests are valued substantially higher than grassland, which is also in line with findings from the literature (e.g. Earnhart 2001). The size of an area increases WTP (e.g.…”

Section: Estimation Results and Value Functionsupporting

confidence: 80%

A generic marginal value function for natural areas

2016

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We conduct a CV and a CE experiment using a generic rather than a situation-specific study design in order to obtain a generic marginal value function for different types of natural areas with different characteristics in the Netherlands. We develop a modelling approach in which we use CV and CE choice data in one model. The value function obtained shows that people attach value to the presence of natural areas, and that these values vary due to differences in the magnitude of areas, in distance to areas, and differences in accessibility and fragmentation of natural areas. We discuss how the value function can be used to incorporate potential substitution between natural areas. We also show that for approximately one-fifth of our sample there is no added value having any kind of natural area nearby and that people living in small municipalities tend to be indifferent between accessible and inaccessible areas. Our approach produces a generic marginal value function, which may be used to inform cost-benefit analyses and land use planning decisions that wish to incorpo- rate positive and negative welfare externalities related to changes in the provision of natural areas. However, we also show that applying this value function to the regional or local scale may produce biased value estimates.JEL Classification H40 · Q26 · Q51

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Section: Estimation Results and Value Functionsupporting

confidence: 80%

A generic marginal value function for natural areas

2016

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“…Garrod and Willis, 1999;Tyrvainen and Miettinen, 2000;Earnhart, 2001;Poor et al, 2007). In particular, there is a long tradition of hedonic price studies measuring environmental values by investigating the effect of environmental amenities on property prices.…”

Section: Introductionmentioning

confidence: 99%

The Amenity Value of English Nature: A Hedonic Price Approach

Gibbons

Mourato

Resende

2013

Environ Resource Econ

161

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Using a hedonic property price approach, we estimate the amenity value associated with proximity to habitats, designated areas, domestic gardens and other natural amenities inEngland. There is a long tradition of studies looking at the effect of environmental amenities and disamenities on property prices. But, to our knowledge, this is the first nationwide study of the value of proximity to a large number of natural amenities in England. We analysed 1 million housing transactions over 1996-2008 and considered a large number of environmental characteristics. Results reveal that the effects of many of these environmental variables are highly statistically significant, and are quite large in economic magnitude. Gardens, green space and areas of water within the census ward all attract a considerable positive price premium. There is also a strong positive effect from freshwater and flood plain locations, broadleaved woodland, coniferous woodland and enclosed farmland. Increasing distance to natural amenities such as rivers, National Parks and National Trust sites is unambiguously associated with a fall in house prices. Our preferred regression specifications control for unobserved labour market and other geographical factors using Travel to Work Area fixed effects, and the estimates are fairly insensitive to changes in specification and sample. This provides some reassurance that the hedonic price results provide a useful representation of the values attached to proximity to environmental amenities in England. Overall, we conclude that the house market in England reveals substantial amenity value attached to a number of habitats, designations, private gardens and local environmental amenities.

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“…Cheshire and Sheppard (1995) find that the quantity of publicly accessible open space surrounding a home has a larger positive effect on home 1 A number of studies use hedonic analysis to estimate the amenity value of particular types of open space, such as golf courses (Do and Grudnitski 1995), neighborhood parks (Weicher andZerbst 1973, Espey andOwusuEdusei 2001), greenbelts (Correll et al 1978, Lee andLinneman 1998), forest areas (Tyrvainen and Miettinen 2000), and wetlands (Doss and Taff 1996, Mahan et al 2000, Earnhart 2001). Other studies use alternative methods: Schultz and King (2001) value than inaccessible open space.…”

Section: Introductionmentioning

confidence: 99%