RT Journal Article
SR Electronic
T1 The Spatial Extent of Water Quality Benefits in Urban Housing Markets
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 628
OP 644
DO 10.3368/le.87.4.628
VO 87
IS 4
A1 Walsh, Patrick J.
A1 Milon, J. Walter
A1 Scrogin, David O.
YR 2011
UL http://le.uwpress.org/content/87/4/628.abstract
AB Water quality regulation continues to be controversial, as demonstrated by recent litigation between the U.S. Environmental Protection Agency and the state of Florida over nutrient standards. While the costs of standards are usually known, benefits may be diverse and difficult to identify. This study investigates the effects of enhanced water quality on both waterfront and nonwaterfront property prices, using hedonic models within an urban market. Findings indicate (1) the value of increased water quality depends upon the property’s location and proximity to waterfront, and the surface area of the water body; and (2) aggregate benefits to nonwaterfront homes may dominate those realized by waterfront homeowners. (JEL Q51, Q53)