Measuring the economic value of water quality

Steinnes, Donald N.

doi:10.1007/bf02116368

Cited by 60 publications

(34 citation statements)

References 4 publications

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“…In addition, the environmental externalities of neighborhoods can be critical for housing choice and price [25][26][27]. Aircraft and transportation noise were negative determinants for housing prices [28][29][30][31] while air and water quality were similarly influential [32][33][34][35]. On the other hand, public open spaces and urban parks increased the value of community environments with more fresh air, recreational facilities, and aesthetic enhancement [36][37][38][39].…”

Section: Hedonic Price Modelmentioning

confidence: 99%

Price Determinants of Affordable Apartments in Vietnam: Toward the Public–Private Partnerships for Sustainable Housing Development

Seo

Chung²,

Kwon

2018

Sustainability

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Abstract:Since the Doi Moi policy of economic reform in 1986, Vietnam has experienced economic development and housing market growth with increasing foreign direct investment. While high-end apartment development has dominated since the emergence of the privatized housing market, more recent focus is on the affordable apartment segment with the remarkable surge of middle-income households in Ho Chi Minh City (HCMC). While most previous studies have analyzed housing price determinants based on locational classification, this study is based on the affordability framework of the housing market in HCMC. It aims to investigate the price determinants of affordable and unaffordable apartment units using the hedonic regression model. The study identified common factors between the two types of apartments, such as vertical shared access and proximity to downtown, as well as unique factors for each, such as more high-rise towers, foreign development, proximity to main roads, and shopping malls only for the affordable segments. The findings have valuable implications, not only for future investors and developers in setting up successful housing development strategies, but also for the public sector in strongly encouraging public-private partnerships for sustainable housing development in Vietnam.

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Section: Hedonic Price Modelmentioning

confidence: 99%

Price Determinants of Affordable Apartments in Vietnam: Toward the Public–Private Partnerships for Sustainable Housing Development

Seo

Chung²,

Kwon

2018

Sustainability

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“…Based on the premise that water quality impacts accrue to land rather than improvements, Steinnes (1992) used a variety of appraisal measures of land value to establish the effect of water clarity (measured using Secchi disk readings) on seasonal use lots across 53 northern Minnesota lakes [25]. His analyses showed that increasing water clarity by one foot added $3384 to the total price of all lakefront lots, $206 to the average price per lot, or $1.99 to the average price per front foot.…”

Section: Middle Era Us Studies: 1984-2003mentioning

confidence: 99%

A Comprehensive Review of the Evidence of the Impact of Surface Water Quality on Property Values

Nicholls

Crompton

2018

Sustainability

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Abstract:The desirability of living on or close to water is reflected in sometimes substantial property price premiums. Water quality has an important influence on property prices, since it impacts a water body's appearance, capacity to support wildlife, and recreational potential. As water quality continues to be altered by human use and activity, and in light of new threats posed by projected climate and associated environmental change, understanding the impact of changing quality on property prices, and the associated property tax base, is paramount. This paper reviews the body of evidence on this topic to date. Of the 43 distinct studies represented in the 48 publications reviewed, the expected, statistically significant relationship between water quality and property price was demonstrated in at least one of the models developed in all but two studies. As a whole, they provide convincing evidence that clean water has a positive effect on property values.

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“…Marginal implicit prices can be interpreted as marginal willingness to pay for housing attributes from the perspective of the household. 1 As people frequently choose to live near a waterbody to enjoy the amenity values provided by it, studies have considered water quality levels in the context of the hedonic model, and related these to the willingness to pay for water quality attributes (Artell 2014;Artell et al 2013;Bin and Czajkowski 2013;Boyle et al 1999;Epp and Al-Ani 1979;Gibbs et al 2002;Krysel et al 2003;Leggett and Bockstael 2000;Michael et al 2000;Netusil et al 2014;Poor et al 2001Poor et al , 2007Steinnes 1992;Walsh et al 2011).…”

Section: Introductionmentioning

confidence: 97%

Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market

Bin

Czajkowski

Li³

et al. 2016

Environ Resource Econ

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In this study we utilize a hedonic property price analysis to examine changes in the implicit price of water quality given housing market fluctuations over time. We analyze Martin County, Florida waterfront home sales from 2001 to 2010 accounting for the associated significant real estate fluctuations in this area through flexible econometric controls in space and time. We apply a segmented regression methodology to identify housing market price instability over time, interact water quality with these identified market segmentations, and embed these interactions within a spatial fixed effect model to further account for any spatial heterogeneity in the waterfront market. Results indicate that water quality improvement is associated with higher property values. We find no evidence that the economic downturn O. Bin et al. crowded out concern for the water quality in this area. We further impute an implicit prices of $2614, evaluated at the sample mean, for 1 % point increase in the water quality grade.

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Measuring the economic value of water quality

Cited by 60 publications

References 4 publications

Price Determinants of Affordable Apartments in Vietnam: Toward the Public–Private Partnerships for Sustainable Housing Development

Price Determinants of Affordable Apartments in Vietnam: Toward the Public–Private Partnerships for Sustainable Housing Development

A Comprehensive Review of the Evidence of the Impact of Surface Water Quality on Property Values

Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market

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