ABSTRACT
The hedonic price method is commonly applied in real estate economics in order to determine the added value of housing characteristics on parcel and housing sales prices. In environmental economics, the hedonic price model is used as a revealed preference economic valuation method. Application of the hedonic price method yields estimates of the implicit prices of the quality of environmental functions. For example, Harrison and Rubinfeld (1978) analyse the relation between housing prices and air quality, while Leggett and Bockstael (2000) consider the impact of water quality on residential land prices.
