Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-22T22:26:00.908Z Has data issue: false hasContentIssue false
  • English
  • Français

Evidence on the Amenity Value of Wetlands in a RuralSetting

Published online by Cambridge University Press:  28 April 2015

Okmyung Bin  and
Stephen Polasky
Okmyung Bin
Affiliation:
Department of Economics, East Carolina University, Greenville, NC
Stephen Polasky
Affiliation:
Department of Applied Economics, University of Minnesota, St. Paul, MN
Get access Rights & Permissions [Opens in a new window]

Abstract

This study uses a hedonic property price method to estimate how wetlandsaffect residential property values in a rural area. The study utilizeswetland inventory data coupled with extensive property sales records betweenJanuary 2000 and September 2004 from Carteret County, NC. Our resultsindicate that i) a higher wetland percentage within a quarter mile of aproperty, ii) closer proximity to the nearest wetland, and iii) larger sizeof the nearest wetland are associated with lower residential propertyvalues. These results contrast with previous hedonic studies that use datafrom urban areas, which found positive associations between wetlands andproperty values. The amenity value of wetlands appears to depend at least asmuch on the characteristics of the area being considered as it does on thecharacteristics of the wetlands.

Keywords

hedonic priceshousing marketrural areawetlandsD12Q24Q26R21
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 37 , Issue 3 , December 2005 , pp. 589 - 602
Copyright
Copyright © Southern Agricultural Economics Association 2005

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bin, O., and Polasky, S.. “Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd.” Land Economics 80(2004): 490–500.Google Scholar
Boyer, T., and Polasky, S.. “Valuing Urban Wetlands: A Review of Non-Market Valuation Studies” Wetlands 24(2004):744–55.Google Scholar
Doss, C., and Taff, S.. “The Influence of Wetland Type and Wetland Proximity on Residential Property Values.” Journal of Agricultural and Resource Economics 21(1996):120–29.Google Scholar
Earnhart, D. “Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations.” Land Economics 77(2001): 12–29.Google Scholar
Halvorsen, R., and Palmquist, R.. “The Interpretation of Dummy Variables in Semilogarithmic Equations.” American Economic Review 70(1980):474–75.Google Scholar
Harrison, D., Smersh, G., and Schwartz, A.. 2001. “Environmental Determinants of Housing Prices: The Impact of Flood Zone Status.” Journal of Real Estate Research 21:3–20.Google Scholar
Lupi, F., Graham-Tomasi, T., and Taff, S.. “A Hedonic Approach to Urban Wetland Valuation.” Staff Paper P91-8. University of Minnesota, 1991.Google Scholar
MacDonald, D., Murdoch, J., and White, H.. “Uncertain Hazards, Insurance and Consumer Choice: Evidence from Housing Markets.” Land Economics 63(1987):361–71.Google Scholar
Mahan, B., Polasky, S., and Adams, R.. “Valuing Urban Wetlands: A Property Price Approach.” Land Economics 76(2000): 100–13.Google Scholar
Milon, J., Gressel, J., and Mulkey, D.. “Hedonic Amenity Valuation and Functional Form Specification.” Land Economics 60(1984):378–87.Google Scholar
North Carolina Division of Coastal Management. Wetland Mapping in Coastal North Carolina. Raleigh, NC 1999a.Google Scholar
North Carolina Division of Coastal Management. North Carolina Coastal Region Evaluation of Wetland Significance. 1999b.Google Scholar
Palmquist, R. “Property Value Models.” Handbook of Environmental Economics, Volume 2. Maler, K.-G. and Vincent, J., eds. Amsterdam: North Holland, 2004.Google Scholar
Palmquist, R., Roka, F., and Vukina, T.. “Hog Operations, Environmental Effects, and Residential Property Values.” Land Economics 73(1997): 114–24.Google Scholar
Reynolds, J.E., and Regalado, A.. “The Effects of Wetlands and Other Factors on Rural Land Values.” Appraisal Journal 72(2002): 182–90.Google Scholar
Rosen, S. “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition.” Journal of Political Economy 82(1974):34–55.Google Scholar
Shabman, L., and Bertelson, M.. “The Use of Development Value Estimates for Coastal Wetland Permit Decisions.” Land Economics 55(1979): 213–22.Google Scholar
Shilling, J., Benjamin, J., and Sirmans, C.. “Adjusting Comparable Sales for Floodplain Location.” The Appraisal Journal 53(1985):429–36.Google Scholar
Shultz, S., and Taff, S.. “Implicit Prices of Wetland Easements in Areas of Production Agriculture.” Land Economics 80(2004):501–12.Google Scholar
White, H. “A Heteroskedasticity-Consistent Co-variance Matrix Estimator and a Direct Test for Heteroskedasticity.” Econometrica 48(1980): 817–38.Google Scholar
Woodward, R., and Wui, Y.. “The Economic Value of Wetland Services: A Meta-Analysis.” Ecological Economics 37(2001):257–70.Google Scholar