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Marginal Price of Lake Recreation and Aesthetics: An Hedonic Approach

Published online by Cambridge University Press:  28 April 2015

Notie H. Lansford Jr.  and
Lonnie L. Jones
Notie H. Lansford Jr.
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater
Lonnie L. Jones
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station
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Abstract

Efficient allocation of water requires knowledge of water's value in both consumptive and nonconsumptive uses. This study estimates the marginal value of water in lake recreational and aesthetic (RA) use. An hedonic price equation (employing the Box-Cox functional form) indicates lake front location, distance to lake, and scenic view are significant RA characteristics of housing. Water front properties command a premium price for the private access they offer. Beyond the water front, the marginal RA price falls rapidly with increasing distance, becoming asymptotic to some minimum. Twenty-two percent of housing price is found to be attributable to the RA component.

Keywords

aestheticBox-Coxhedonichousinglakenonmarketrecreationwater
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 1 , July 1995 , pp. 212 - 223
Copyright
Copyright © Southern Agricultural Economics Association 1995

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