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The Hedonic Approach: No Panacea for Valuing Water Quality Changes

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  • Willis, Cleve E.
  • Foster, John H.

Abstract

The hedonic approach has been advanced recently as an important tool for assessing the value of non-market environmental attributes. In its most usual form, the method involves an attempt econometrically to capture differential prices for homes attributable to variations in the environmental characteristic. This technique has been applied with success for a variety of attributes - most notably the study of air pollution. However, the case studies reported here for water quality valuation were much less successful. We advance several reasons why the hedonic approach may be ill-suited to measuring the value of water quality.

Suggested Citation

  • Willis, Cleve E. & Foster, John H., 1983. "The Hedonic Approach: No Panacea for Valuing Water Quality Changes," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 12(1), pages 1-5.
    • Handle: RePEc:ags:nareaj:159524
    DOI: 10.22004/ag.econ.159524
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    References listed on IDEAS

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    1. Bayless, Mark, 1982. "Measuring the benefits of air quality improvements: A hedonic salary approach," Journal of Environmental Economics and Management, Elsevier, vol. 9(1), pages 81-99, March.
    2. Bishop, Richard C. & Heberlein, Thomas A., 1979. "Measuring Values Of Extramarket Goods: Are Indirect Measures Biased?," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 277818, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Brown, James N & Rosen, Harvey S, 1982. "On the Estimation of Structural Hedonic Price Models," Econometrica, Econometric Society, vol. 50(3), pages 765-768, May.
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    Cited by:

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    2. Spencer Henson, 1996. "Consumer Willingness To Pay For Reductions In The Risk Of Food Poisoning In The Uk," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 403-420, January.
    3. Sinden, Jack A., 2003. "Influence of Conservation of Native Vegetation on Land Values in Moree Plains Shire, NSW," Working Papers 12903, University of New England, School of Economics.

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