In this article, Lewis and Acharya “examine the influence of lot size on willingness to pay for locational environmental attributes for an urban coastal watershed. We compare traditional hedonic price functions with Parsons' (1990) weighting argument to determine whether or not traditional measures overestimate marginal prices.” Usually how far properties are from a particular environmental characteristic, such as water and land quality will more than likely affect the cost of housing and reduce the prices.
“In the northeastern United States, much of the degradation comes from municipal and industrial waste… Only recently have hedonic models been used to examine spatial externalities and how these may affect home prices. Proximity to water bodies, such as rivers, lakes, and estuaries, may be an asset to home owners, but relatively quality of land and water attributes can result in disamenities and reduced home prices.” (Page 317)
Hedonic pricing methods measure demand for environmentally based resources but its values are not used by this method, instead it based off the individual willingness to pay for that given resource or compensation of a prior loss. According to Investopedia: “The most common example of the hedonic pricing method is in the housing market: the price of a property is determined by the characteristics of the house (size, appearance, features, condition) as well as the characteristics of the surrounding neighborhood (accessibility to schools and shopping, level of water and air pollution, value of other homes, etc.) The hedonic pricing model is used to estimate the extent to which each factor affects the price.” If the environmental quality improves, it is reflected in the pricing which results in an...
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...onmental variation, and in particular, water quantity and quality variables, considerable work remains to identify indicators of environmental health that influence housing decisions. The availability may be potentially useful for hedonic property analysis in areas where water is an important environmental factor shaping development.” (Page 329) All in all, environmental valuation methods should be chosen using the best strategy that will work alongside the hedonic property pricing models and can change in pattern based on the environment.
Works Cited
Lewis, Lynne Y., and Gayatri Acharya. "Environmental Quality And Housing Markets: Does Lot Size Matter?."Marine Resource Economics 21.3 (2006): 317-330. Academic Search Complete. Web. 11 Mar. 2014.
"Hedonic Pricing." Investopedia. N.p., n.d. Web. 11 Mar. 2014.
The positive aspects of ‘Lake’ Powell are few yet noteworthy. Glen Canyon Dam’s hydroelectric power-plant generates one thousand three hundred mega watts of electricity at full operation. That is enough power to supply three hundred fifty thousand homes. Glen Canyon Dam holds twenty seven million acre feet of water, which is equivalent to twice the Colorado River’s annual flow (Living Rivers: What about the hydroelectric loss?). One of the most valuable reasons for the dam to remain active is that “Lake Powell generates four hundred fifty five million dollars per year in tourist revenue, without this cash inflow, gas-and-motel towns . . . would undoubtedly wilt, and surrounding counties and states would lose a substantial tax base” (Farmer 185). These positive aspects are of no surprise considering they are the reason dams are built in the first place.
The City Council of Boomtown, a fictitious city, wants to expand their current borders and is considering building new houses and apartments on one of three locations: Green Hill, Delta Wetlands, or Seaside Cliff. Though each of the landforms have differing advantages and disadvantages, the cliff would be the best place to build. It is located along the East Bay, north of the Rolling River. Seaside Cliff has the most stable land and the easiest solutions to its problems. It is also the least flood-prone and damaging to the environment. The most logical location to build in Boomtown is Seaside Cliff for several reasons.
Because of the amount of overdeveloped areas that are now vacant, the desire to renovate old vacant properties and land plots has all but disappeared. What if there was a beneficial solution to unused land plots in need of rehab and redesign? What if, instead of paving over every leftover inch of grass and dirt in urban areas to make room for more parking for our daily commuting polluters, we instead reinvent that land for a purpose that is both beneficial to our
Richard C. Nelson, the author, is a professor in the School of Landscape Architecture and Planning and the Planning Degree program at the University of Arizona. He has made substantial contributions in real estate analysis and urban growth trends. Nelson also created the term ‘megapolitan’ which he predicts the United States will have over twenty by 2040. These megapolitans are the result of the reverse sprawl and creating major economic centers, which will make America globally competitive. Nelson’s background ties in to many of his ideas in the book, with the main points focusing on demographic changes, housing trends, more space for future jobs and the benefits of reshaping metropolitan America. Changing demographics support the notion that more people are choosing an urban lifestyle over sprawl, which means a higher preference of
The Colorado River basin has been the focus of ongoing water disputes for numerous years. These disagreements encompass the seven states which lay claim for health reasons as well as economic necessity that their region has access to this water basin. According to Richards and Orr (2003), “At the heart, it is an issue of scarcity.” (p. 19). As in many places around the world, the demand for clean water is not able to be fulfilled by the supply available. In the case of the Colorado River, the increase in the area’s population combined with water needs of industry as well as the needs of agriculture have all resulted in an increased friction among parties requiring water access. Hence, the disputes among states regarding the Colorado River basin are not limited only to surface water, but in addition include the right of states to drill wells for irrigation which can often result in a decrease in the amount of water from the Colorado River (Richards & Orr, 2003). In an attempt to obtain the water they need for their city’s inhabitants as well the water needed for a city’s economic viability, California leaders have even attempted to buy rights to the area’s...
Kotkin, Joel. “Suburban Development.” Wall Street Journal. 23 Nov. 2007. N.p. Web. 3 May. 2010.
William Goetzmann, a. L. (2006). Estimating House Price Indexes in the Presence of Seller Reservation Prices. Review Of Economics and Statistics. pp. 100-112.
The perception of the areas we live in, are of major importance to the well being of humans because the areas we choose to live in may very well affect our lifestyle. There are pros and cons to living anywhere in the United States and the most prominent factors are suburban and urban areas. Suburban areas contain more open land, and forests which are crucial factors in our environment, whereas urban areas contain more job opportunities and opportunities for investments, which result in higher payments. The factors associated with urbanization are buildings, factories, and huge amounts of pollution, whereas suburban areas contain more farms, plantations, and crops. Researchers are still debating whether urban
With regards to the causes of the housing supply shortage in coastal areas, main contributors that lead to the issue are local finance structures, community resistance and environmental reviews.
- The federal housing underwriters warn housing developers that the presence of black families in the area would depreciate the value of the property and neighborhood and established a national housing appraisal system that had race play a factor with "real estate assessments". In, Race the House we Live In, a documentary presented by California Newsreel, Melvin Oliver, Sociologist explains because of these characteristics the white suburban neighborhoods (green areas) flourished as properties appreciated in value providing these families net-worth for growing, while the areas that were majority colored or in the process of changing (redlined areas) development
Man's efforts to improve the environment in which he lives and improve their quality of life, then depend on the availability of water, there is a close correlation between key water quality and public health, including the ability to access water and the level of hygiene and water between abundance and economic and tourism growth.
... environmental quality leading health indicators are air quality index exceeding 100 and children of ages 3 to 11 exposed to secondhand smoke. Poor water quality can lead to gastrointestinal illness, neurological problems and cancer. Poor air quality can cause cardiovascular disease, cancers, and asthma. Certain chemicals found in homes and workplaces can contribute to severe poisonings and other toxic serious effects.
"Water Pollution." Current Issues: Macmillan Social Science Library. Detroit: Gale, 2010. Opposing Viewpoints in Context. Web. 5 May 2014.
Valuation of real estates or properties basically, refers to appraising a property or a real estate to form an opinion about the value of the property. This value is normally the properties’ market value. Properties are heterogeneous in nature; meaning they are not all identical or alike and thus, they have different values. However, it is possible to get a range for the values. There are some obvious factors like physical location of a property that automatically makes the market value of different properties differ. The materials used on a property and other features also contribute to making property differ in their value. Other factors such as the physical size of a property still determine a property’s market value (Histon Fine Homes, 2008
Williams, Joy. "One Acre: On Devaluing Real Estate to Keep Land Priceless." Listening to Earth.