Economic impacts of federal and state river protection in the rural riverside housing market : the Upper Deschutes River, Oregon Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/8c97kt37g

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  • Hedonic Pricing is an effective and versatile method of estimating the relationships between market prices and environmental quality in a world of changing natural resource decisions. One natural resource policy not yet studied using Hedonic Pricing is the protection of free-flowing rivers. As the pressures of development and outdoor recreation increase, the public is demanding greater emphases toward, maintaining the values of these river and related land resources. There is perhaps no other natural resource which is more complex to manage, or which demands a greater breadth of management resources. Hedonic Pricing affords policy makers and the public the opportunity to study specific market effects of waterway management decisions. The objectives of this thesis are to evaluate, through Hedonic Pricing, the impacts of increasingly common river management systems and planning. The Upper Deschutes River in Central Oregon is a member river of the Federal Wild and Scenic Rivers Act and the Oregon Scenic Waterway Act. The impacts of these programs on the river corridor housing market are evaluated. State and local actions implemented to maintain the high quality of the Upper Deschutes River resources are also studied. An Hedonic Pricing model of the river corridor housing market is developed. The response of private property sales prices to the network of river protection strategies is evaluated under alternative hypotheses. Specification of the river protection variables includes indicator (dummy) variables corresponding to formal designation of the Upper Deschutes River to the state and federal programs. Additionally, a lagged polynomial function is defined to model the effect of the less comprehensive river management policies. The results of this analysis suggest a positive and significant relationship between sales prices and resource protection policies modelled in both forms. Resampling techniques are used to study the performance of the parameter estimates.
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