ABSTRACT
Hedonic analysis is a useful tool in assessing the dollar value impacts of environmental externalities by examining house prices. Hedonics is a revealed preference approach that uses property values to measure the price people are willing to pay for environmental goods, such as improved air quality or cleanup of nearby contaminated sites. Researchers should continue to utilize the hedonic approach to estimate the prices of environmental goods and to calculate the benefits from increasing environmental quality. The environmental variables were measures of visibility and of total suspended particulates. Various reviews of existing empirical studies show similarities in the results for several types of environmental externalities, which suggests that the approach is a reasonable one, at least in some situations. K. Kiel and J. Bowen estimate hedonic regressions for St. Louis County in 1990 where they have purposely chosen environmental measures that are not correlated with each other.
