VALUING GOODS CHARACTERISTICS - AN APPLICATION OF THE HEDONIC PRICE METHOD TO ENVIRONMENTAL ATTRIBUTES

This study examines the effect of selected countryside characteristics on house prices in a rural area of the United Kingdom centred around the Forest of Dean in Gloucestershire. Data are gathered from a variety of sources and the hedonic price method is then used to derive a model of property prices from which the marginal costs of particular characteristics can be estimated. Some countryside characteristics, for example woodland, are observed to have a positive influence on house prices while others, like open water, are found to have no observable effect. The proximity of less desirable characteristics, such as marshland, are shown to have the effect of reducing house prices. © 1992 Academic Press Limited.