Understanding the Drivers of Forest, Residential, and Agricultural Land Values in Yamhill County Using Hedonic Models

Abstract

Hedonic modeling is commonly used in land and property value estimations in an attempt to identify the impact that various attributes have on the market value of that property. The purpose of this study is to examine the factors contributing to land value of agricultural, forest, and residential properties in Yamhill County, as part of the Spatial Ecosystem Services Analysis, Modeling, and Evaluation (SESAME, http://www.pdx.edu/ecosystem-services/) project. This paper discusses the process and preliminary results of the development of hedonic models that will be utilized for predicting land value changes under future land conversion scenarios. Applying the models to future scenarios will provide insight into the effect that land conversion will have on market value of land in Yamhill County, in order to elucidate one component of the total land value in the area. Numerous studies have performed hedonic modeling in order to provide greater understanding of the non-market ecosystem service values that are contributing to land values, and it is necessary to have baseline information on the value of environmental attributes in order to identify potential policy and planning activities that can preserve these values. Current methods for assessing the value of non-market ecosystem services are mostly in development stages, with few widely-accepted approaches. Utilizing hedonic modeling and other revealed preference techniques may provide valuable insight into the contribution of nonmarket goods and services, in order to ensure they are adequately accounted for in planning and management decisions. UNDERSTANDING THE DRIVERS OF LAND VALUE ii