Valuing the Barmah-Millewa Forest and in stream river flows:A spatial heteroskedasticity and autocorrelation consistent (SHAC) approach

Tapsuwan, Sorada, Polyakov, Maksym, Bark, Rosalind and Nolan, Martin (2015) Valuing the Barmah-Millewa Forest and in stream river flows:A spatial heteroskedasticity and autocorrelation consistent (SHAC) approach. Ecological Economics, 110. pp. 98-105. ISSN 0921-8009

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Abstract

This paper uses spatial heteroskedasticity and autocorrelation consistent (SHAC) hedonic property price analysis of house sales during 2000-2011 to estimate the marginal value of in stream flows and proximity to an iconic freshwater ecosystem, the Barmah-Millewa Forest (BMF) in Australia's Murray-Darling Basin. We establish: (1) that proximity to the BMF is a statistically significant and positive determinant of nearby house prices in Victoria and New South Wales, i.e. for an average property worth $199,000 that is 10. km away from the BMF, moving 1. km closer will increase sales price by $2000; and (2) a non-linear relationship between in stream flow and sales price which is suggestive of homebuyer preferences for flow that is neither low (i.e. drought flows) nor high (i.e. flood flows). The results provide estimates of the benefits of in stream flow that could be used to inform freshwater ecosystem restoration policy in the basin and are suggestive of regional benefits that accrue to homeowners living near key freshwater-dependent ecosystems in the basin.

Item Type: Article
Additional Information: Funding Information: This research was conducted with funding from the CSIRO Water for Healthy Country Flagship and the Australian Research Council Centre of Excellence for Environmental Decisions . Publisher Copyright: © 2014 Published by Elsevier B.V.
Uncontrolled Keywords: aesthetic appreciation,conservation area accessibility index,hedonic pricing,in stream flows,water sharing,environmental science(all),economics and econometrics,sdg 15 - life on land ,/dk/atira/pure/subjectarea/asjc/2300
Faculty \ School: Faculty of Science > School of Environmental Sciences
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Depositing User: LivePure Connector
Date Deposited: 18 Nov 2021 01:56
Last Modified: 22 Nov 2021 01:37
URI: https://ueaeprints.uea.ac.uk/id/eprint/82169
DOI: 10.1016/j.ecolecon.2014.12.008

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