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Publication Information

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Title: Estimating the economic value of cultural ecosystem services in an urbanizing area using hedonic pricing

Author: Sander, Heather A.; Haight, Robert G.

Date: 2012

Source: Journal of Environmental Management. 113: 194-205.

Publication Series: Scientific Journal (JRNL)

Description: A need exists to increase both knowledge and recognition of the values associated with ecosystem services and amenities. This article explores the use of hedonic pricing as a tool for eliciting these values. We take a case study approach, valuing several services provided by ecosystems, namely aesthetic quality (views), access to outdoor recreation, and the benefits provided by tree cover in Dakota County, Minnesota, USA. Our results indicate that these services are valued by local residents and that hedonic pricing can be used to elicit at least a portion of this value. We find that many aspects of the aesthetic environment significantly impact home sale prices. Total view area as well as the areas of some landcover types (water and lawn) in views positively influenced home sale prices while views of impervious surfaces generally negatively influenced home sale price. Access to outdoor recreation areas significantly and positively influenced home sale prices as did tree cover in the neighborhood surrounding a home. These results illustrate the ability of hedonic pricing to identify partial values for ecosystem services and amenities in a manner that is highly relevant to local and regional planning. These values could be used to increase policy-maker and public awareness of ecosystem services and could improve their consideration in planning and policy decisions.

Keywords: ecosystem services, economic valuation, hedonic pricing, spatial econometrics

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Sander, Heather A.; Haight, Robert G. 2012. Estimating the economic value of cultural ecosystem services in an urbanizing area using hedonic pricing. Journal of Environmental Management. 113: 194-205.


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