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Land Use Conflicts in the Coastal Zone: An Approach for the Analysis of the Opportunity Costs of Protecting Coastal Resources

Published online by Cambridge University Press:  10 May 2017

Steven F. Edwards  and
Glen D. Anderson
Steven F. Edwards
Affiliation:
Department of Resource Economics, University of Rhode Island
Glen D. Anderson
Affiliation:
Department of Resource Economics, University of Rhode Island
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Abstract

The implicit price (hedonic) equation for the housing market in a coastal town in southern Rhode Island was estimated using a conditional Box-Cox maximum likelihood procedure. Linear, log-linear, and semi-log functional forms were rejected with 95% confidence. Estimates of marginal implicit prices for water related attributes (view of, frontage on, and proximity to a coastal salt water pond) derived from these rejected models were quite different from those determined from the optimal functional form. This result has important ramifications for public policy, as is shown in an example, since these attributes were found to be highly valued in the housing market.

Type
Articles
Information
Journal of the Northeastern Agricultural Economics Council , Volume 13 , Issue 1 , April 1984 , pp. 73 - 81
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

Research was partially supported by Sea Grant and the Rhode Island Experiment Station.

References

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