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Water quality and cottage prices in Ontario

Clapper, Julia and Caudill, Steven B. (2014) Water quality and cottage prices in Ontario. Applied economics, Vol. 46 (10), p. 1122-1126. ISSN 0003-6846. eISSN 1466-4283. Article.

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DOI: 10.1080/00036846.2013.851778


We use hedonic analysis to show that water clarity has a significant effect on lakefront property values in the Near North Ontario, Canada. In this study, water clarity is measured by Secchi disc reading. Based on two different dependent variables; sales price and sales price per square foot, and the estimation of linear, log–linear and log–log models, we find that water clarity does matter to lakefront property buyers in the Near North, Ontario. In particular, our results indicate that buyers are willing to pay about 2% more for each 1-foot increase in water clarity or Secchi depth. This finding is consistent across all of our specifications.

Item Type:Article
ID Code:10061
Uncontrolled Keywords:Environment, water quality, hedonic regression, Q51, Q53, R11, Near North Ontario, Canada
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/05 Econometria
Divisions:001 Università di Sassari > 01-a Nuovi Dipartimenti dal 2012 > Scienze economiche e aziendali
Deposited On:02 Sep 2014 14:44

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