Jack Steketee

Semester

Spring

Date of Graduation

2020

Degree Type

BA

College

Davis College of Agriculture, Natural Resources and Design

Department

Division of Resource Economics & Management

Committee Chair

Heather Stephens

Committee Member

n/a

Abstract

Hedonic valuation is a method of using a market, such as the housing market, to estimate the value of non-market goods. An example of a non-market good we might want to value is environmental quality. Proper valuation of the environment can help make informed policy decisions, as well as help better protect or restore it. We use the hedonic valuation model This research uses data from a housing market in Colorado to estimate the value homeowners place on an environmental restoration project. We hypothesized that overall, we would see an increase in home value after a restoration project was completed as the increase in environmental quality would be reflected in a higher price. Our results show that there was around an 8% increase in selling price of homes after a restoration project took place. Results show that not every restoration project may lead to an increase in price however, as results by county show a decrease in home value in Boulder County. By showing that a clean environment may lead to a rise in property values, there could be an increase in restoration efforts, positively impacting the environment.

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