ABSTRACT
This chapter analyses following questions: what explains the role of environmental valuation in people's decision-making process? and what implications do the theory and evidence hold for planners and other policy makers responsible for guiding the path of urban and regional development? The concept of environmental valuation is straightforward: Economic value, which is generated by competition over scarce resources, is placed on conditions that enhance the wellbeing of housholds and firms. Local public policy is closely attuned to the value of individual homeowners' assets, but the growing importance of quality of life may mean that new frameworks are needed to shift the focus more toward the community level. Research on urban growth makes clear that quality of life is so integral to regional development that, irrespective of geography, competitive advantage depends on it. The empirical component involves an analysis of the relationship between median household income and median housing value across the continental United States.
