ECONOMIC EVALUATION OF AESTHETIC AMENITIES: A CASE STUDY OF RIVER VIEW¹

Abstract

Presence of a river in an urban setting may contribute positively to an aesthetically pleasing environment. Such aesthetic effects are not typically linked to specific economic activities and occur, for example, when residents are exposed to a river‐view. Qualities enhancing the aesthetic value of the river include the presence of parks, trails, and vegetation along the riverbanks. The value of aesthetic amenities provided by the South Saskatchewan to the City of Saskatoon residents was estimated in this study using non‐market methods. The implicit price of the river view was estimated using the Hedonic Price Model, whereas value through willingness to pay for property taxes or higher rents were also estimated using actual market data. The total annual value of the river to the City of Saskatoon through addition of aesthetic amenities was estimated at $1.2 million in 1989 dollars.

Valuing Urban Wetlands: A Property Price Approach

“…Some studies also evaluate the influence of water quality on property value in addition to shorefront and proximity (d'Arge and Shogren 1989;David 1968;Feather, Pettit, and Ventikos 1992;Young and Teti 1984); improved water quality increases property values. Other applications of the hedonic property price method for valuing water resources include reservoir level changes (Khairi-Chetri and Hite 1990), river views (Kulshreshtha and Gillies 1993), and restoration of urban streams (Streiner and Loomis 1995).…”

Riparian Buffers and Hedonic Prices: A Quasi‐Experimental Analysis of Residential Property Values in the Neuse River Basin

“…Previous studies have shown that proximity to shoreline is highly desirable in residential housing markets (Shabman and Bertelson 1979;Milon, Gressel, and Mulkey 1984;Earnhart 2001;Landry, Keeler, and Kriesel 2003). The literature suggests that residential properties with water views command a price premium (Kulshreshtha and Gillies 1993;Lansford and Jones 1995;Bin et al 2008), but the premium is influenced by the quality of amenities provided by the water body in addition to the quality of the view (Streiner and Loomis 1995;Benson et al 1998). Leggett and Bockstael (2000) use hedonic techniques to show that water quality has a significant effect on property values along the Chesapeake Bay.…”

Effect of water features proximity on farmland prices in a landlocked country: the consequences for planning

“…This interpretation is also supported by the fact that residential and recreational df -degree of freedom; for abbreviations see Table 1 doi: 10.17221/11/2016-SWR houses also are more strongly in demand in the vicinity of rivers and command higher prices than do more distant properties (Kulshreshtha & Gillies 1993). The natural character of the river and its surroundings also plays an important role, as shown by the study of Mooney and Eisgruber (2001).…”