Valuation of Intangibles: The Case of Water Quality

摘要

The hedonic technique has been advanced in the last several years as an important research tool for assessing the value of environmental attributes not subject directly to market forces. In its most usual form, the method involves attempting econometrically to capture differential prices for homes due to variations in the environmental characteristics. It has been applied successfully for a variety of attributes--perhaps most notably the study of air pollution. However, the two case studies of water quality improvement reported in this study appear not to have increased prices paid for real property.