Riparian Buffers and Hedonic Prices: A Quasi‐Experimental Analysis of Residential Property Values in the Neuse River Basin

13 Pages Posted: 28 Apr 2020

See all articles by Okmyung Bin

Okmyung Bin

affiliation not provided to SSRN

Craig E. Landry

UGA Ag & Applied Economics

Gregory F. Meyer

affiliation not provided to SSRN

Date Written: November 2009

Abstract

Riparian buffers, the strips of vegetation along banks of rivers and streams, have been proposed as a key instrument to protect water quality in the United States. Riparian buffers impose a restriction on the use of private property limiting harvest and development, but buffers can also provide for aesthetic and recreational benefits that may accrue to property owners. With data from the Neuse River Basin in North Carolina, this study attempts to provide empirical evidence on the effect of a mandatory buffer rule on the value of riparian properties. Spatial autoregressive hedonic models are estimated within a quasi‐experimental framework using the imposition of the buffer rule as the treatment and nonriparian properties as a control group. Results indicate that a riparian property generally commands a high premium. We find no evidence, however, that the mandatory buffer rule has had a significant impact on riparian property values when compared with the control group.

Keywords: hedonic prices, quasi‐experimental analysis, riparian buffers, spatial econometrics

Suggested Citation

Bin, Okmyung and Landry, Craig and Meyer, Gregory F., Riparian Buffers and Hedonic Prices: A Quasi‐Experimental Analysis of Residential Property Values in the Neuse River Basin (November 2009). American Journal of Agricultural Economics, Vol. 91, Issue 4, pp. 1067-1079, 2009, Available at SSRN: https://ssrn.com/abstract=3585861 or http://dx.doi.org/10.1111/j.1467-8276.2009.01316.x

Okmyung Bin (Contact Author)

affiliation not provided to SSRN

No Address Available

Craig Landry

UGA Ag & Applied Economics ( email )

Athens, GA 30602-7509
United States

Gregory F. Meyer

affiliation not provided to SSRN

No Address Available

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