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National expenditures on local amenities

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  • Bieri, David S.
  • Kuminoff, Nicolai V.
  • Pope, Jaren C.

Abstract

We develop a framework for estimating Americans’ implicit expenditures on spatially varying nonmarket amenities. We focus on location-specific factors that affect the quality of life but are not formally traded. Examples include climate, geography, pollution, local public goods, and transportation infrastructure. Households pay for residential access to these amenities indirectly, through housing prices, wages and property taxes. We construct a database of 75 amenities, match it to 5 million households’ location choices, and use hedonic methods to estimate their total amenity expenditures. Our benchmark estimate for the year 2000 is $562 billion--equivalent to 8% of Americans’ personal consumption expenditures.

Suggested Citation

  • Bieri, David S. & Kuminoff, Nicolai V. & Pope, Jaren C., 2023. "National expenditures on local amenities," Journal of Environmental Economics and Management, Elsevier, vol. 117(C).
    • Handle: RePEc:eee:jeeman:v:117:y:2023:i:c:s0095069622000766
    DOI: 10.1016/j.jeem.2022.102717
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    3. Bishop, Kelly C. & Kuminoff, Nicolai V. & Mathes, Sophie M. & Murphy, Alvin D., 2024. "The marginal cost of mortality risk reduction: Evidence from housing markets," Journal of Urban Economics, Elsevier, vol. 139(C).
    4. Jinhyoung Kim & Thomas G. Johnson & Byung Min Soon, 2023. "An Explicit Spatial Approach to the Value of Local Social Amenities in Metro and Non-Metro Counties in the U.S.: Implications for Comprehensive Wealth Measurement," Land, MDPI, vol. 12(3), pages 1-31, February.
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    7. Shen, Mingzhou & Fan, Qin & Fisher-Vanden, Karen & Wrenn, Douglas H., 2024. "Drought Response in the Western United States: Household Location Choices and Housing Market Feedback," 2024 Annual Meeting, July 28-30, New Orleans, LA 343565, Agricultural and Applied Economics Association.

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