Noelwah R. Netusil

The Effect of Environmental Zoning and Amenities on Property Values: Portland, Oregon

This study uses the hedonic-price-method to examine how environmental zoning and amenities are related to the price of single-family residential properties sold between 1999 and 2001 in Portland, Oregon. The impact of environmental zoning is found to vary with the type of environmental zoning and the property’s location. Amenities are found to influence a property’s sale price with the effect varying by amenity type and proximity. The net effect on a property’s sales price is dependent on the type of environmental zoning, location in the study area, amenities on the property, and amenities in the surrounding neighborhood. (JEL R14, R52)

Estimating the Demand for Tree Canopy: A Second-Stage Hedonic Price Analysis in Portland, Oregon

The benefits of large patches of tree canopy are estimated by applying a hedonic price model to the sale of single-family residential properties in Portland, Oregon. The first-stage analysis provides evidence of diminishing returns from increasing tree canopy past a certain level. The second-stage analysis uses a survey of property owners’ preferences and socioeconomic characteristics to overcome the problem of endogeneity. Average benefit estimates for the mean canopy cover within ¼ mile of properties in the study area, using the second-stage model, are between 0.75% and 2.52% of the mean sale price. (JEL Q21, Q51)

Valuing water quality in urban watersheds: A comparative analysis of Johnson Creek, Oregon, and Burnt Bridge Creek, Washington

This study uses the hedonic price method to investigate the effect of five water quality parameters on the sale price of single-family residential properties in two urbanized watersheds in the Portland, Oregon-Vancouver, Washington metropolitan area. Water quality parameters include E. coli or fecal coliform, which can affect human health, decrease water clarity and generate foul odors; pH, dissolved oxygen, and stream temperature, which can impact fish and wildlife populations; and total suspended solids, which can affect water clarity, aquatic life, and aesthetics. Properties within ¼ mile, ½, mile, one mile, or more than one mile from Johnson Creek are estimated to experience an increase in sale price of 13.71%, 7.05%, 8.18%, and 3.12%, respectively, from a one mg/L increase in dissolved oxygen levels during the dry season (May–October). Estimates for a 100 count per 100 mL increase in E. coli during the dry season are −2.81% for properties within ¼ mile of Johnson Creek, −0.86% (½ mile), −1.19% (one mile), and −0.71% (greater than one mile). Results for properties in Burnt Bridge Creek include a significantly positive effect for a one mg/L increase in dissolved oxygen levels during the dry season for properties within ½ mile (4.49%), one mile (2.95%), or greater than one mile from the creek (3.17%). Results for other water quality parameters in Burnt Bridge Creek are generally consistent with a priori expectations. Restoration efforts underway in both study areas might be cost justified based on their estimated effect on property sale prices.

Recreational damages from reservoir storage level changes

Several extreme events affecting recreation have occurred in the Humboldt River Basin of northern Nevada. In 1992, agricultural users completely drained Rye Patch Reservoir killing millions of fish. Additionally, since 1990 gold mines located in the basin have pumped and discharged water into the Humboldt River; in recent years, discharges have equaled approximately 60% of the rivers annual flow. In this paper we develop and estimate a joint model of fish catch and recreation demand, both of which depend on water levels, to assess the losses and gains from water level changes tied to events in the basin.

The Economics of Information: A Classroom Experiment.

An experiment, in which groups of students are asked to judge the quality of goods for which quality can be fully assessed only after their consumption, is presented as a way to stimulate a classroom discussion on what consumers use as an indicator of quality when faced with imperfect information and what producers use to signal quality.

Urban Stream Restoration Projects: Do Project Phase, Distance, and Type Affect Nearby Property Sale Prices?

Between 1990 and 2014, more than 200 restoration projects were implemented in the Johnson Creek Watershed, Oregon, to mitigate storm water runoff, restore floodplains, remove invasive plants, restore wetlands, and improve fish and wildlife habitat. We use a repeat-sales model to investigate if restoration projects have an effect on the sale price of nearby single-family residential properties, and if estimated effects vary by project phase, distance, and type. Properties in closest proximity to storm water, floodplain, and revegetation projects experience a positive effect during different project phases. Estimated effects for wetland projects are negative for 9 of the 12 distance/project phase variables. (JEL Q24, Q51)