Influence of Water Quality on the Value of Recreational Properties Adjacent to St. Albans Bay, Vermont

摘要

Hedonic price functions were estimated to determine the impact of degraded water quality on the value of seasonal homes adjacent to St. Albans Bay on Lake Champlain in northern Vermont. A rating of water quality and a zero-one location variable were used as alternative specifications of water quality. Degrades water quality of the bay had depressed adjacent property values by $4,500 on the average, or about 20 percent, compared with similar nearby properties on the larger but cleaner lake.