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The contribution of scenic views of, and proximity to, lakes and reservoirs to property values
Author(s) -
Nicholls Sarah,
Crompton John L.
Publication year - 2018
Publication title -
lakes and reservoirs: research and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.296
H-Index - 39
eISSN - 1440-1770
pISSN - 1320-5331
DOI - 10.1111/lre.12207
Subject(s) - recreation , renting , property value , recreational use , property (philosophy) , value (mathematics) , resource (disambiguation) , natural resource economics , geography , environmental resource management , business , environmental science , economics , computer science , ecology , civil engineering , engineering , computer network , philosophy , real estate , finance , epistemology , machine learning , biology
Water is arguably the world's most critical resource, although its aesthetic and recreational functions typically receive less attention than its consumptive uses. Views of, and access to, attractive water resources are capitalized into property prices in the form of sales price and rental premiums, measured since the 1970s with the hedonic pricing technique. This study synthesizes the evidence to date with respect to the value of lakes and reservoirs as aesthetic and recreational resources to nearby residents. Findings are reported relating to the effects of scenic views of, and proximity, to reservoirs and large artificial lakes, the North American Great Lakes, and other smaller inland lakes. Of the 44 distinct reviewed studies that included tests of statistical significance, only two failed to produce any significant findings in the directions anticipated (i.e., a positive impact of water frontage or view and/or negative impact of increasing distance). Improvements in methodological approaches—from early studies employing anecdotal observation and visual comparison to more recent investigations employing advanced geographical information systems and rigorous spatially explicit regression techniques—are traced. The potential implications of climate variability and changes for property values are addressed, as is the growing movement towards the adoption of green infrastructure. The need to consider changes to aesthetic and recreational values, in addition to outcomes for more traditional consumptive uses during cost–benefit analyses associated with proposed (re)developments, is emphasized.