Not from experience: A comparison of experts’ opinions and hedonic price estimates of the incremental value of property attributable to an environmental feature

Summary

This paper compares the results of a contingent valuation survey of estate agents’ estimates of the incremental value in residential property attributable to a canal or inland waterway, with those produced by a hedonic house price model based on actual sale prices. Estimates of the house price premium derived by the two techniques differ significantly. The accuracy of the results and reasons for the discrepancy are discussed.

Keywords:

• Hedonic price estimates
• incremental residential property value
• environmental features