ON ESTIMATING HOUSEHOLD DEMAND FOR OUTDOOR RECREATION FROM PROPERTY VALUES: AN EXPLORATION

This paper explores how hedonic price analysis might be used to estimate the surplus benefits of local outdoor recreation when distance to the recreational site is captured in property values. The model is characterized by the endogenous choice of distance to a local recreational area by households in coastal property markets and by the capitalization of proximity in property values. Equilibrium occurs when the reduction in the cost of a property due to a marginal increase in distance to the recreational area equals the associated loss in recreational surplus resulting from increased travel costs. The theoretical model is applied in an exploratory analysis of the "demand" for distance to the nearest public beach from which total surplus benefits are estimated