To our knowledge, this is the first hedonic property valuation
model to estimate marginal implicit prices of ambient water
quality for an entire local watershed using both waterfront
and non-waterfront properties. It is important to note that the
localized study area/watershed is located in a county adjacent
to the Chesapeake Bay where the cultural heritage has depended on water and water quality as it relates to
commercial fish harvests as well as recreation. Public opinion
polls have shown that homeowners in sub-watersheds of the
Chesapeake Bay are both knowledgeable about water quality
issues, and willing to pay for improvements. As such, the
value of water quality changes should be incorporated into
local land use planning and policy issues. The ambient water
quality within this watershed depends largely on non-point
source pollution sources, which is turn, are dependent directly
on development or land use and associated impervious
surfaces. This study provides estimates of the marginal values
of ecosystem indicators that can be directly linked to
development activities within a small local watershed, and
thus, could potentially help regional planners who are
responsible for weighing the costs (including environmental
costs) with the benefits of additional development that will
increase impervious surfaces within a watershed thereby
impacting water quality. The significant ambient water
quality variables included within this study are total suspended
solids and dissolved inorganic nitrogen.
To our knowledge, this is the first hedonic property valuationmodel to estimate marginal implicit prices of ambient waterquality for an entire local watershed using both waterfrontand non-waterfront properties. It is important to note that thelocalized study area/watershed is located in a county adjacentto the Chesapeake Bay where the cultural heritage has depended on water and water quality as it relates tocommercial fish harvests as well as recreation. Public opinionpolls have shown that homeowners in sub-watersheds of theChesapeake Bay are both knowledgeable about water qualityissues, and willing to pay for improvements. As such, thevalue of water quality changes should be incorporated intolocal land use planning and policy issues. The ambient waterquality within this watershed depends largely on non-pointsource pollution sources, which is turn, are dependent directlyon development or land use and associated impervioussurfaces. This study provides estimates of the marginal valuesof ecosystem indicators that can be directly linked todevelopment activities within a small local watershed, andthus, could potentially help regional planners who areresponsible for weighing the costs (including environmentalcosts) with the benefits of additional development that willincrease impervious surfaces within a watershed therebyimpacting water quality. The significant ambient waterquality variables included within this study are total suspendedsolids and dissolved inorganic nitrogen.
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