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Property values and water quality: A nationwide meta-analysis and the implications for benefit transfer
Citation:
Guignet, D., Matt Heberling, M. Papenfus, O. Griot, AND B. Holland. Property values and water quality: A nationwide meta-analysis and the implications for benefit transfer. Applications and Potential of Ecosystem Services Valuation within USDA, Washington,DC, April 23 - 24, 2019.
Impact/Purpose:
The US Department of Agriculture (USDA) has a growing interest in measuring the value of ecosystem services provided by its programs and policies. The USDA has organized a workshop to explore new economic approaches because it faces data and methodological constraints. Our research proposes an approach to assess the benefits of improved water quality using existing, published hedonic property value studies. The hedonic method requires homeowners to be aware of and value changes in water quality such that it will be capitalized in their house prices. We examine the house price effects of water quality changes across different waterbodies and regions of the US to improve USDA’s assessment of its programs and policies.
Description:
50-word Abstract: A comprehensive meta-analysis of hedonic property value studies examining water quality in the US is conducted. Focusing on the set of 36 studies that analyzed objective water quality measures, n=656 unique elasticity estimates are derived. Unit value and transfer functions are then estimated for purposes of benefit-transfer.