The Impact of Housing Market Segmentation between Tourists and Residents on the Hedonic Price for Landscape Quality

Nils Soguel, Marc-Jean Martin () and Alexandre Tangerini

Swiss Journal of Economics and Statistics (SJES), 2008, vol. 144, issue IV, 655-678

Abstract: Market segmentation is an important issue when estimating the implicit price for an environmental amenity from a surrogate market like property. This paper tests the hypothesis of a segmentation of the housing market between tourists and residents and computes the implicit price for natural landscape quality in Swiss alpine resorts. The results show a clear segmentation between both groups of consumers, although tests also show that the estimated coefficient for landscape is similar in the tourists’ model and in the residents’. However, since the functional form is non linear, the nominal – rather than relative - value of a change in natural landscape quality is higher in the tourist housing market than in the residents’. Hence, considering the segmentation of the market between tourists and residents is essential in order to provide valid estimates of the nominal implicit price of natural landscape quality.

Keywords: Hedonic prices method; Market segmentation; Landscape quality; Landscape value; MACBETH (search for similar items in EconPapers)
JEL-codes: D49 Q26 Q51 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:2008-iv-6

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