Skip to Main Content
U.S. Forest Service
Caring for the land and serving people

United States Department of Agriculture

Home > Search > Publication Information

  1. Share via EmailShare on FacebookShare on LinkedInShare on Twitter
    Dislike this pubLike this pub
    Author(s): German N. Izon; Michael S. Hand; Matias Fontenla; Robert P. Berrens
    Date: 2010
    Source: Contemporary Economic Policy. 28(4): 537-553.
    Publication Series: Scientific Journal (JRNL)
    Station: Rocky Mountain Research Station
    PDF: Download Publication  (576.92 KB)

    Description

    The objective of this paper is to examine the off-site benefits, as capitalized into housing values, of protecting 1.6 million acres of Inventoried Roadless Areas (IRAs) in the state of New Mexico, United States. In light of petitions filed by various U.S. states to maintain the status of IRAs as roadless lands, spatial hedonic price models are estimated and used to calculate the implicit value of IRAs in New Mexico. Findings show that a two-stage least squares (2-SLS), robust spatial-lag model is the most appropriate econometric representation of the hedonic price function, and that IRA lands are a significant and positive determinant of house value. After controlling for the presence of Wilderness Areas (WAs) and other characteristics, results indicate that, on average, there is a 5.6% gain in the property value of a house from being located in, or adjacent to, a Census tract with IRAs. In the aggregate, this gain represents 3.5% of the value of all owner-occupied units in New Mexico ($1.9 billion in capitalized value, or an annualized value in perpetuity of $95 million, assuming a 5% interest rate).

    Publication Notes

    • You may send email to rmrspubrequest@fs.fed.us to request a hard copy of this publication.
    • (Please specify exactly which publication you are requesting and your mailing address.)
    • We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
    • This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.

    Citation

    Izon, German N.; Hand, Michael S.; Fontenla, Matias; Berrens, Robert P. 2010. The economic value of protecting Inventoried Roadless Areas: A spatial hedonic price study in New Mexico. Contemporary Economic Policy. 28(4): 537-553.

    Keywords

    economic value, Inventoried Roadless Areas (IRAs), New Mexico

    Related Search


    XML: View XML
Show More
Show Fewer
Jump to Top of Page
https://www.fs.usda.gov/treesearch/pubs/46337