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Using contingent valuation to measure property value impacts

Using contingent valuation to measure property value impacts Purpose – The purpose of this paper is to measure the impact of a proposed biomass facility on prospective property values using the contingent valuation method. Design/methodology/approach – The paper uses a web‐based survey approach to measure respondents' reactions to two scenarios: one that describes the study area currently and another that also mentions the proposed biomass facility. Findings – The paper found no statistically significant difference in the respondents' WTP for a house based on whether they read about the baseline scenario (no mention of the biomass plant) or the proposed biomass plant. Research limitations/implications – The survey sampled males, younger people, and those with higher incomes relative to the county where the facility will be built. A few respondents, who were offered very low bids (5 percent and 15 percent of their current home value), may not have understood the question or were exhibiting strategic behavior. Originality/value – This is one of the few studies that uses contingent valuation to measure property value impacts. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Property Investment & Finance Emerald Publishing

Using contingent valuation to measure property value impacts

Clifford Lipscomb
Journal of Property Investment & Finance , Volume 29 (4/5): 12 – Jul 12, 2011
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References (20)

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1463-578X
DOI
10.1108/14635781111150330
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to measure the impact of a proposed biomass facility on prospective property values using the contingent valuation method. Design/methodology/approach – The paper uses a web‐based survey approach to measure respondents' reactions to two scenarios: one that describes the study area currently and another that also mentions the proposed biomass facility. Findings – The paper found no statistically significant difference in the respondents' WTP for a house based on whether they read about the baseline scenario (no mention of the biomass plant) or the proposed biomass plant. Research limitations/implications – The survey sampled males, younger people, and those with higher incomes relative to the county where the facility will be built. A few respondents, who were offered very low bids (5 percent and 15 percent of their current home value), may not have understood the question or were exhibiting strategic behavior. Originality/value – This is one of the few studies that uses contingent valuation to measure property value impacts.

Journal

Journal of Property Investment & Finance – Emerald Publishing

Published: Jul 12, 2011

Keywords: Contingent valuation; Property values; Biomass; WTP; Real estate; Property management

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