The Economic Valuation of the Environment and Public Policy

A Hedonic Approach

New Horizons in Environmental Economics series

Noboru Hidano, Professor Emeritus, Tokyo Institute of Technology, Japan

The importance of the hedonic valuation approach in public policy evaluation and environmental value estimation is now widely accepted. This book is especially designed to illustrate the basic assumptions of the hedonic approach and highlight the strengths and weaknesses associated with it. Combining rigorous theoretical analysis, detailed empirical studies and an extensive history of hedonic valuation, the book is both a good introductory text to the field and a precise yet comprehensive aid for professionals and practitioners alike.

‘The Economic Valuation of the Environment and Public Policy fills an important gap in economic literature by providing a comprehensive account of hedonic pricing and its use in valuation of environmental amenities. . . . It should be invaluable to anyone contemplating undertaking a hedonic pricing study of an environmental amenity, as it contains practical advice on a myriad of modeling issues. Likewise, it should be of value to anyone wishing to thoroughly understand and critique the results of a hedonic pricing exercise.’
– Richard T. Carson, Environment

‘I appreciate this book’s blend between theory and applications. It contains an informative review of the development of the theory of the hedonic price technique as well as an insightful analysis of the econometrics of the approach. Noboru Hidano has a gift for breaking down the difficult theoretical and econometric problems into simple and manageable proportions.’
– Per-Olov Johansson, Stockholm School of Economics, Sweden