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Using Benefit Transfer to Estimate Housing Value Increases from Improved Water Clarity

Author

Listed:
  • Matthew Burlingame
  • Dennis Guignet
  • Matthew Heberling
  • Michael Papenfus

Abstract

This study provides step-by-step guidance for practitioners and local stakeholders on how to use existing study results to conduct benefit transfer, and ultimately make informed predictions of how improvements in lake water clarity may benefit surrounding communities. The procedures are demonstrated using a publicly available meta-dataset developed by the U.S. Environmental Protection Agency, and a subsequent meta-analysis that synthesizes the literature of how improvements in water clarity impacts home values. The benefit transfer procedures are demonstrated using a case study of 14 large lakes in Kosciusko County, Indiana. Lake-specific average increases in home values, as well as the value of the housing stock in aggregate, are calculated for illustrative improvements in lake water clarity. This analysis provides a critical bridge to better connect high-quality, academic research with real-world policy analysis, and ultimately serves to better equip local governments and stakeholders to make more informed policy and land use decisions. Key Words: benefit transfer; hedonic; meta-analysis; property value; lake; water clarity

Suggested Citation

  • Matthew Burlingame & Dennis Guignet & Matthew Heberling & Michael Papenfus, 2023. "Using Benefit Transfer to Estimate Housing Value Increases from Improved Water Clarity," Working Papers 23-07, Department of Economics, Appalachian State University.
    • Handle: RePEc:apl:wpaper:23-07
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp2307.pdf
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    References listed on IDEAS

    as
    1. Patrick J. Walsh & J. Walter Milon & David O. Scrogin, 2011. "The Spatial Extent of Water Quality Benefits in Urban Housing Markets," Land Economics, University of Wisconsin Press, vol. 87(4), pages 628-644.
    2. Ryan Stapler & Robert Johnston, 2009. "Meta-Analysis, Benefit Transfer, and Methodological Covariates: Implications for Transfer Error," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(2), pages 227-246, February.
    3. Randall S. Rosenberger & Robert J. Johnston, 2009. "Selection Effects in Meta-Analysis and Benefit Transfer: Avoiding Unintended Consequences," Land Economics, University of Wisconsin Press, vol. 85(3), pages 410-428.
    4. Dennis Guignet & Matthew T. Heberling & Michael Papenfus & Olivia Griot, 2022. "Property Values, Water Quality, and Benefit Transfer: A Nationwide Meta-analysis," Land Economics, University of Wisconsin Press, vol. 98(2), pages 191-218.
    5. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
    6. Robert J. Johnston & Randall S. Rosenberger, 2010. "Methods, Trends And Controversies In Contemporary Benefit Transfer," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 479-510, July.
    7. Dennis Guignet & Charles Griffiths & Heather Klemick & Patrick J. Walsh, 2017. "The Implicit Price of Aquatic Grasses," Marine Resource Economics, University of Chicago Press, vol. 32(1), pages 21-41.
    8. Robert J. Johnston & Elena Y. Besedin & Ryan Stapler, 2017. "Enhanced Geospatial Validity for Meta-analysis and Environmental Benefit Transfer: An Application to Water Quality Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 343-375, October.
    9. Lindhjem, Henrik & Navrud, Ståle, 2008. "How reliable are meta-analyses for international benefit transfers?," Ecological Economics, Elsevier, vol. 66(2-3), pages 425-435, June.
    10. Barton, David N., 2002. "The transferability of benefit transfer: contingent valuation of water quality improvements in Costa Rica," Ecological Economics, Elsevier, vol. 42(1-2), pages 147-164, August.
    11. Johnston, Robert J. & Duke, Joshua M., 2010. "Socioeconomic adjustments and choice experiment benefit function transfer: Evaluating the common wisdom," Resource and Energy Economics, Elsevier, vol. 32(3), pages 421-438, August.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    benefit transfer; hedonic; meta-analysis; property value; lake; water clarity;
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