Featured Research

from universities, journals, and other organizations

Economist makes economic case for environmental regulation

Date:
May 19, 2014
Source:
Clarkson University
Summary:
Environmental advocates push for regulation. Industry responds with caution, concerned about associated costs, while the public chooses sides. But new research promises to diffuse some of that tension. An economist used an extensive dataset of Adirondack property transactions, which isolated the impacts on property values of many factors, including lake water quality, data like water acidity, as well as indicator measures, such as the presence or absence of loons, a waterfowl that is highly sensitive to water pollution.

Martin Heintzelman, whose other projects include an analysis of the relationship between the location of wind energy facilities and declining property values, and how environmental indicators, like the presence of the Common Loon on an Adirondack lake, have a substantial impact on property values.
Credit: Ting-Li Wang, Clarkson University

It's a familiar story. Environmental advocates push for regulation. Industry responds with caution, concerned about associated costs, while the public chooses sides.

But research by Clarkson University Associate Professor of Economics Martin Heintzelman promises to diffuse some of that tension. Heintzelman uses the tools and models of economics to inform cost-benefit analyses of environmental issues. By putting a dollar value on the benefits of clean air or water, for example, he can strengthen a case for regulation.

"Much of my work has focused in the area of property values, which is a very good metric to assess benefits," Heintzelman says. He is currently working with his Clarkson University colleague, Professor of Civil & Environmental Engineering Thomas Holsen, on a New York state-funded project to measure the benefits of reducing mercury pollution and acid deposition by assessing their effect on property values and water quality throughout the state.

Heintzelman's other projects include an analysis of the relationship between the location of wind energy facilities and declining property values, and how environmental indicators, like the presence of the Common Loon on an Adirondack lake, have a substantial impact on property values.

Heintzelman used an extensive dataset of Adirondack property transactions, which isolated the impacts on property values of many factors, including lake water quality, data like water acidity, as well as indicator measures, such as the presence or absence of loons, a waterfowl that is highly sensitive to water pollution.

"Preliminary results suggest that when making property transaction decisions, homeowners value being on or near water bodies that are less threatened by acidity and contain loons," says Heintzelman.

In fact, the Clarkson University researcher and his team found that the presence of loons generates a premium on property transactions of 7-8 percent, which for the average lakefront house is $13,500. Likewise, the presence of invasive plants, such as milfoil, reduces transaction prices by approximately 7 percent.

"These results suggest that there are significant benefits to Adirondack homeowners from regulations, which would improve water quality and aquatic ecosystems," says Heintzelman.

Clarkson University launches leaders into the global economy. One in five alumni already leads as a CEO, VP or equivalent senior executive of a company. Located just outside the Adirondack Park in Potsdam, N.Y., Clarkson University is a nationally recognized research university for undergraduates with select graduate programs in signature areas of academic excellence directed toward the world's pressing issues. Through 50 rigorous programs of study in engineering, business, arts, sciences and health sciences, the entire learning-living community spans boundaries across disciplines, nations and cultures to build powers of observation, challenge the status quo, and connect discovery and engineering innovation with enterprise.


Story Source:

The above story is based on materials provided by Clarkson University. Note: Materials may be edited for content and length.


Cite This Page:

Clarkson University. "Economist makes economic case for environmental regulation." ScienceDaily. ScienceDaily, 19 May 2014. <www.sciencedaily.com/releases/2014/05/140519104848.htm>.
Clarkson University. (2014, May 19). Economist makes economic case for environmental regulation. ScienceDaily. Retrieved July 23, 2014 from www.sciencedaily.com/releases/2014/05/140519104848.htm
Clarkson University. "Economist makes economic case for environmental regulation." ScienceDaily. www.sciencedaily.com/releases/2014/05/140519104848.htm (accessed July 23, 2014).

Share This




More Earth & Climate News

Wednesday, July 23, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

New Orleans Plans to Recycle Cigarette Butts

New Orleans Plans to Recycle Cigarette Butts

AP (July 21, 2014) New Orleans is the first U.S. city to participate in a large-scale recycling effort for cigarette butts. The city is rolling out dozens of containers for smokers to use when they discard their butts. (July 21) Video provided by AP
Powered by NewsLook.com
Shark Sightings a Big Catch for Cape Tourism

Shark Sightings a Big Catch for Cape Tourism

AP (July 21, 2014) A rise in shark sightings along the shores of Chatham, Massachusetts is driving a surge of eager vacationers to the beach town looking to catch a glimpse of a great white. (July 21) Video provided by AP
Powered by NewsLook.com
Spectacular Lightning Storm Hits London

Spectacular Lightning Storm Hits London

AFP (July 19, 2014) A spectaCular lightning storm struck the UK overnight Friday. Images of lightning strikes over the Shard and Tower Bridge in central London. Duration: 00:23 Video provided by AFP
Powered by NewsLook.com
A Centuries' Old British Tradition Is Far from a Swan Song

A Centuries' Old British Tradition Is Far from a Swan Song

AFP (July 19, 2014) As if it weren't enough that the Queen is the Sovereign of the UK and 15 other Commonwealth realms, she is also the owner of all Britain's unmarked swans. Duration: 02:18 Video provided by AFP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins