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Physical and Environmental Geography

2013

Environmental Economics/Public Economics

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The Hedonic Method Of Valuing Environmental Policies And Quality, Philip E. Graves Jan 2013

The Hedonic Method Of Valuing Environmental Policies And Quality, Philip E. Graves

PHILIP E GRAVES

Benefit-cost analysts attempt to compare two states of the world, the status quo and a state in which a policy having benefits and costs is being contemplated. For environmental policies, this comparison is greatly complicated by the difficulty in inferring the values that individuals place on an increment to environmental quality. Unlike ordinary private goods, environmental goods are not directly exchanged in markets with observable prices. In this chapter, the hedonic approach to inferring the beneļ¬ts of an environmental policy is examined.