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NATIONAL ESTIMATES OF THE PRICES OF ENVIRONMENTAL GOODS
Impact/Purpose:
To estimate environmental benefits over time and across the country, using hedonic property value estimation techniques.
Description:
This project is making use of hedonic estimation to calculate the implicit price of environmental amenities over time and across the country. This will offer a number of benefits. We will be able to test whether and by how much prices vary across urban areas; such results could yield more efficient regulation area by area. In addition, we will be able to examine how prices vary over time. This will allow us to produce better forecasts of the benefits of cleaning our air and water. Finally, studying how neighborhoods respond over time to the placement of environmental disamenities (such as landfills) will help us to understand how the siting process impacts on various groups, allowing for development of a more equitable method of siting. While hedonic studies have been undertaken to evaluate disamenity prices, this effort will be unique in that it will simultaneously include many environmental indicators in the house price equation, and will allow us to estimate environmental benefits over time and across the country.