A Comprehensive Review of the Evidence of the Impact of Surface Water Quality on Property Values

Sarah Nicholls and John Crompton
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Sarah Nicholls: Departments of Community Sustainability and Geography, Michigan State University, East Lansing, MI 48824, USA
John Crompton: Department of Recreation, Park and Tourism Sciences, Texas A&M University, College Station, TX 77843, USA

Sustainability, 2018, vol. 10, issue 2, 1-30

Abstract: The desirability of living on or close to water is reflected in sometimes substantial property price premiums. Water quality has an important influence on property prices, since it impacts a water body’s appearance, capacity to support wildlife, and recreational potential. As water quality continues to be altered by human use and activity, and in light of new threats posed by projected climate and associated environmental change, understanding the impact of changing quality on property prices, and the associated property tax base, is paramount. This paper reviews the body of evidence on this topic to date. Of the 43 distinct studies represented in the 48 publications reviewed, the expected, statistically significant relationship between water quality and property price was demonstrated in at least one of the models developed in all but two studies. As a whole, they provide convincing evidence that clean water has a positive effect on property values.

Keywords: hedonic pricing; property value; water quality; water pollution (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:2:p:500-:d:131729

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