RT Journal Article
SR Electronic
T1 Using Contingent-Pricing Analysis to Value Open Space and Its Duration at Residential Locations
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 17
OP 35
DO 10.3368/le.82.1.17
VO 82
IS 1
A1 Earnhart, Dietrich
YR 2006
UL http://le.uwpress.org/content/82/1/17.abstract
AB To estimate benefits from open space adjacent to residences, this paper blends contingent valuation and conjoint analysis within a housing market context. The resulting framework — “contingent-pricing analysis,” — represents the stated preference counterpart to hedonic-pricing analysis by asking individuals to state prices for hypothetical housing locations, which include an environmental amenity. Then, it asks individuals to state their willingness to pay for a better and longer lasting environmental amenity. As an advantage over hedonic-pricing analysis, it directly isolates willingness to pay. Results indicate that potentially short-lasting open space adds no value, while preserved open space adds $ 5,066 or 5% to housing value. (JEL R14, Q24)