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On Estimating Household Demand for Outdoor Recreation from Property Values: An Exploration

Published online by Cambridge University Press:  10 May 2017

Steven F. Edwards
Steven F. Edwards*
Affiliation:
Northeast Fisheries Center, National Marine Fisheries Service, Woods Hole, MA 02543
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Abstract

This paper explores how hedonic price analysis might be used to estimate the surplus benefits of local outdoor recreation when distance to the recreational site is captured in property values. The model is characterized by the endogenous choice of distance to a local recreational area by households in coastal property markets and by the capitalization of proximity in property values. Equilibrium occurs when the reduction in the cost of a property due to a marginal increase in distance to the recreational area equals the associated loss in recreational surplus resulting from increased travel costs. The theoretical model is applied in an exploratory analysis of the “demand” for distance to the nearest public beach from which total surplus benefits are estimated.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 18 , Issue 2 , October 1989 , pp. 140 - 148
Copyright
Copyright © 1989 Northeastern Agricultural and Resource Economics Association 

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Footnotes

This work began at the Marine Policy Center. Woods Hole Oceanographic Institution. Robert Solow's advise significantly improved the quality of the theoretical section. Comments by Philip Logan, James Opaluch, James Dunn, and two anonymous reviewers improved the quality of the paper. Early financial support was provided by the J. N. Pew. Jr. Charitable Trust through the Woods Hole Oceanographic Institution's Marine Policy Center. The contents do not necessarily represent the policy of the National Marine Fisheries Service and should not assume endorsement by the Federal government.

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