- Category: Economic
- Subcategory:
- Tool Type :
- Input data: real estate prices and variables; socioeconomic characteristics in the neighborhood; public services in the neighborhood.
- Output: value that can be attributed to the environmental features of the neighborhood, such as views or recreational options.
- Target users: researchers / trained practitioners
- Location tested:
- Level of uncertainty:
- Version:
- Publication:
- Rights:
- Difficulty level of implementation: Complex
- Skill required (for method use):
- Authors:
- Tool contributors:
- Project general coordinator:
- Project Scientific manager:
- Project manager:
- Asche, F., J. Bronnmann, A. Cojocaruc (2021): “The value of responsibly farmed fish: A hedonic price study of ASC-certified whitefish”, Ecological Economics 188: 1-15.
- Boto-García, D., & Leoni, V. (2023). The Economic Value of Coastal Amenities: Evidence from Beach Capitalization Effects in Peer-to-Peer Markets. Environmental and Resource Economics, 84(2), 529-557.
- Catma, S. (2020): “Non-market valuation of beach quality: Using spatial hedonic price modeling in Hilton Head Island, SC”, Marine Policy 115: 1-9.
- Epp, D. and K. Al-Ani (1979): “The effect of water quality on rural nonfarm residential property values”, American Journal of Agricultural Economics 61 (3): 529-534.
- Gardner, M. and H. Pollakowski (1977): “Economic Valuation of Shoreline”, The Review of Economics and Statistics 59 (August): 272-278
- Gibbons, S., S. Mourato and G. Resende (2014): “The Amenity Value of English Nature: A Hedonic Price Approach”, Environmental and Resource Economics 57: 175-196
- Lee, M. (2014): “Hedonic Pricing of Atlantic Cod: Effects of Size, Freshness, and Gear”, Marine Resource Economics 29: 259-277.
- Ma, S. and S. Swinton (2011): “Valuation of ecosystem services from rural landscapes using agricultural land prices”, Ecological Economics 70 (9, July): 1649-1659.
- Ridker, R. and J. Henning (1967): “The Determinants of Residential Property Values with Special Reference to Air Pollution”, The Review of Economics and Statistics (2, May): 246-257.
- Sander, H. and S. Polasky (2009): “The value of views and open space: Estimates from a hedonic pricing model for Ramsey County, Minnesota, USA”, Land Use Policy 26: 837-845.
- Name: Carlo Fezzi
- Organization:
- Email:
Hedonic Pricing (HP)
Hedonic pricing involves examining the relationship between the price of a good or service and its environmental characteristics. The exchange prices of goods and services reflect their characteristics, since the latter are related to production costs and are valued according to consumer preferences. The hedonic pricing method takes advantage of this relationship, usually based on the idea that real estate prices reflect environmental attributes such as views, air quality, or proximity to recreational areas among its characteristics. By decomposing the market price of certain real estate properties into these characteristics, it is possible to identify which part corresponds to environmental attributes and, in this way, obtain information on the economic valuation of the corresponding ecosystem services.
- Availability / URL: None
