Using benefit transfer to estimate housing value increases from improved water clarity: A case study of lakes in Kosciusko County, Indiana

Abstract

AbstractThis study provides step‐by‐step guidance for practitioners and local stakeholders on how to use existing study results to conduct benefit transfer (BT), and ultimately make informed predictions of how improvements in lake water clarity may benefit surrounding communities. The procedures are demonstrated using a publicly available meta‐dataset developed by the United States Environmental Protection Agency, and a subsequent meta‐analysis that synthesizes the literature on how improvements in water clarity impact home values. The BT procedures are demonstrated using a case study of 14 large lakes in Kosciusko County, Indiana. Lake‐specific average increases in home values, as well as the value of the housing stock in aggregate, are calculated for illustrative improvements in lake water clarity. This analysis provides a critical bridge to better connect high‐quality, academic research with real‐world policy analysis, and ultimately serves to better equip local governments and stakeholders to make more informed policy and land use decisions.