Hotelling's Theory, Enhancement, and the Taking of the Redwood National Park

12 Pages Posted: 27 Mar 2020

See all articles by Peter Berck

Peter Berck

University of California, Berkeley - Department of Agricultural & Resource Economics

William R. Bentley

Yale University

Date Written: May 1997

Abstract

The United States has used its power of eminent domain to take a considerable fraction of all remaining old‐growth redwood for inclusion in the Redwood National Park. Hotelling's theory implies that the price of redwood remaining in private hands should have increased. In this paper we provide an estimate of how much the taking increased the price of redwood as well as a test of the underlying Hotelling theory.

Keywords: enhancement, Hotelling's theory, Redwood National Park, taking, valuation principle, L730, Q230, Q260

Suggested Citation

Berck, Peter and Bentley, William R., Hotelling's Theory, Enhancement, and the Taking of the Redwood National Park (May 1997). American Journal of Agricultural Economics, Vol. 79, Issue 2, pp. 287-298, 1997, Available at SSRN: https://ssrn.com/abstract=3561856 or http://dx.doi.org/10.2307/1244130

Peter Berck (Contact Author)

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

Berkeley, CA 94720
United States

William R. Bentley

Yale University

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