Question

wary

2 (15 points) Between 1 and 5 houses in Centennial, Wyoming sell every year West Centennial nan pent grove with a spring fed look trickling thru it, East Centennial doesn't have aigle wee in it, as it is poor to 100 mile an hour winds. One of the economists who live in Centennial (there are in fact 3 mowned environmental economists who live in this town of 200 people) proposes to do a ledomir study to see how much Ieving in there area of town worth to residents. He gathers data from the last 5 years (14 houses were sold over this period) that shows that on average a house sells for $200,000, and that typical attributes (cha siguince feet, bedrooms, etc) account for most differmces in price-but that holding everything the count houses in the tree area sell for $15,000 more per year that those oss the bare hill. What can we conclade? What are the strengths of a hedonic study? Are there any weaknesses in this hedonic study? L why $15,000 might overstate the price gap and wtry it might widerstate the price gap Which of the other 4 methods for valuing environmental benefits might way be useful here? (Be sure to dioces beindly how each se useful and what the bigged weakness of each method is)

Answer 1

Answer:

2nd,3rd,and 4th house

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