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Identification of Preferences in Hedonic Models, Volume I of Benefit Analysis Using Implicit Market Methods for Benefit Estimation
This report deals with one approach to inferring the value of environmental improvements - the hedonic method. It is part of the accepted wisdom of economics that environmental quality is a public good. Hence improvements in environmental quality will tend to be provided in less than optimal quantities by decentralized decisions. A corollary to this tenet is that government intervention may be required to provide optimal quantities of environmental improvements. To determine optimal quantities, the costs and benefits of environmental improvements are needed. In practice, optimal quantities of environmental improvements are almost never directly sought. Instead, government intervention for environmental improvements comes in the form of new rules or changes in rules. Benefit cost analysis can be applied to changes in rules to determine whether they are in the right direction. If enough rule changes are evaluated, then optimal quantities of environmental improvements can be achieved indirectly.
1. Benefits Analysis
1. Benefits Analysis - Valuation
1. Benefits Analysis - Valuation - Revealed PreferenceEnvironmental Media:
f. MultimediaAuthors: McConnell, Kenneth E.
Cropper, Maureen L.
Phipps, Tim T.EPA Project Officer/ Manager:
Carlin, AlanGeographic Area:Study Purpose: Methodology Development & EvaluationReport Series: Benefit Analysis Using Indirect or Imputed Market Methods
List of all reports in the Series:
- Participating Organizations
Maryland, University of, Department of Agricultural and Resource Economics Address: Symons Hall
City: College Park State: MD ZIP: 20742
Environmental Protection Agency,
Office of Policy and Resource Management, Office of Policy Analysis
City: Washington State: DC ZIP: 20460
- Report Details
FinalDate:Number of Pages: 122Grant/Contract #: CR-811043-01-0
- How to Obtain Report
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