Recreational and aesthetic value of lakes reflected by housing prices : an hedonic approach /
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| Other Authors: | , , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1991.
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| Subjects: | |
| Online Access: | Link to OAKTrust copy |
| Abstract: | Allocation of water within Texas' Colorado River Basin has historically focused on quantities demanded by traditional consumptive uses such as municipal, industrial, and agricultural uses. As the quantity demanded by these users grows, efficient allocation of water among competing consumptive and nonconsumptive uses becomes more critical. This study takes some initial steps toward filling the dearth of information on lake recreational and aesthetic value. Two central Texas lakes are chosen for the analysis: Lakes Austin and Travis. The hedonic price approach is employed to estimate the implicit price of recreational and aesthetic benefits. Hedonic price models specifying housing characteristics hypothesized to be important components of housing price are estimated using the Box-Cox functional form. The estimated price equations indicate several statistically significant characteristics of housing, among which are distance to the lake, view of the lake, and variation in lake level. Analysis of marginal values of distance to the lake, lake view, and lake level deviation, indicates that proximity to a lake is the most important component of recreational and aesthetic value. Water front properties command a premium price for the private access they offer for enjoyment of the public lake waters. Beyond the water front properties, the marginal recreational and aesthetic price falls rapidly with increasing distance from a lake, becoming asymptotic to some minimum at approximately 2,000 feet. The total price of recreational and aesthetic benefits reflected in housing prices is estimated using the estimated hedonic price functions. The average recreational and aesthetic price for residences around Lake Austin is considerably higher than for those around Lake Travis, presumably due primarily to the closer proximity of Lake Austin to the Austin SMSA. Marginal recreational and aesthetic value is estimated for selected Lake Travis water levels. The annualized marginal value estimates are indicated to have a lower marginal price per acre-foot than many agricultural uses. However, a limitation of the study is that the marginal price estimates reflect only recreational and aesthetic value to homeowners. Total recreational and aesthetic value includes the housing component plus the value to other users and persons expressing option, bequest, or existence value. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Agricultural Economics." |
| Physical Description: | x, 156 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references. |