Valuation of Water Level: A Spatial Hedonic Analysis on Lakeshore Properties

Weiwei Liu

Journal of Agricultural and Resource Economics, 2020, vol. 45, issue 01

Abstract: White Bear Lake, Minnesota, has lost a large amount of water due to excessive groundwater extraction. Using a general nested spatial hedonic pricing model, this paper identifies and evaluates the impact of water loss in the lake on lakeshore properties. In addition to providing a quantitative estimate of property value loss, the results show that the marginal loss intensifies as water level persistently declines further. The findings of this study alert emerging urban areas to the negative externalities of failing to balance the tasks of meeting increased water demand as well as achieving sustainable water use.

Keywords: Environmental Economics and Policy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:298432

DOI: 10.22004/ag.econ.298432

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