In recent decades, the price of a diverse range of
goods has been analyzed from a hedonic perspective.
Most applications of the method have focused on the
valuation of environmental externalities in analyzing the real estate market. Considering housing as a
multi-attribute good, its price will be determined by
a set of variables: size, age, comfort level, etc. When
identical characteristics are shared, it is possible that
environmental aspects such as proximity to a green area, noise, etc. can explain the differences in its
market price. The price function can be formulated
as follows