In this Section:

	Background
	Project Components:
	Agriculture
	Park Visitations
	Ranching
	Riparian Corridors
	Ski Recreation
	Water Markets
	Related Links
	Contacts

Research and Products:
Economic Values of Riparian Corridors

Background and Project Overview

Urban populations value different types of natural amenities, such as parks, golf courses, wetlands, and river corridors. However, the particular valued features of natural amenities remain unclear. This research develops and utilizes a novel set of data on amenity characteristics to identify what features contribute to value. Topics explored in the research include 1) how homebuyers value manmade recreation environments, and 2) whether homebuyers value the condition of the vegetation in their nearest riparian corridor or are indifferent to quality differentials in natural environments.

Methods

The effect of riparian corridors and parcel greenness on house prices in Tucson, Arizona, is determined through the use of remote sensing vegetation indices. The results of the hedonic property price analysis show that vegetation vigor and percent ground cover (two characteristics measured by vegetation indices) are significant factors in explaining house price variation in Tucson.

Findings

Homebuyers are willing to pay 5.3 percent and 5 percent more for an equivalent home, respectively, for a 10 percent increase in greenness at the parcel and nearest riparian corridor. The results of this phase of the research show that homebuyers have distinct preferences between riparian species, valuing hydro and mesoriparian species, such as cottonwoods and mesquites, most highly. Homebuyers are also willing to pay more for a home that is located near a riparian corridor with greater vegetation volume and species richness. The results of these investigations show that the riparian corridor adds considerable value to private property values in Tucson, specifically those sections of the corridor that support abundant native tree species. Additionally, homebuyers distinguish between natural and manmade amenities. Therefore, accurate property assessment requires that attention be paid to the specific services and values that various types of vegetated space provide.

References

Acharya, G. and L. L. Bennett. 2001. Valuing Open Space and Land-Use Patterns in Urban Watersheds. Journal of Real Estate Finance and Economics v22, n2-3, 221-37.

Bark-Hodgins, R. H., D. E. Osgood, and B. G. Colby. 2006. Remotely sensed proxies for environmental amenities in hedonic analysis: what does green mean? In Environmental Valuation: Intraregional and Interregional Perspective, Edited J. I. Carruthers and B. Mundy. Ashgate, 191-210. Aldershot, England ; Burlington, VT : Ashgate. 275 pp,

Benson, E. D., J. L. Hansen, J. Arthur, L. Schwartz, and G. T. Smersh. 1998. Pricing residential amenities: the value of a view. Journal of Real Estate Finance and Economics 16, 55-73.

Colby B. G. and S. Wishart, 2002. Quantifying the Influence of Desert Riparian Areas on Residential Property Values. The Appraisal Journal LXX (3): 304-308.