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Using contingent valuation to measure property value impacts

Clifford Lipscomb (Greenfield Advisors, LLC, Atlanta, Georgia, USA)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 12 July 2011

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.

Keywords

Citation

Lipscomb, C. (2011), "Using contingent valuation to measure property value impacts", Journal of Property Investment & Finance, Vol. 29 No. 4/5, pp. 448-459. https://doi.org/10.1108/14635781111150330

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited