Valuing water quality in urban watersheds: A comparative analysis of Johnson Creek, Oregon, and Burnt Bridge Creek, Washington

Abstract

This study uses the hedonic price method to investigate the effect of five water quality parameters on the sale price of single-family residential properties in two urbanized watersheds in the Portland, Oregon-Vancouver, Washington metropolitan area. Water quality parameters include E. coli or fecal coliform, which can affect human health, decrease water clarity and generate foul odors; pH, dissolved oxygen, and stream temperature, which can impact fish and wildlife populations; and total suspended solids, which can affect water clarity, aquatic life, and aesthetics. Properties within ¼ mile, ½, mile, one mile, or more than one mile from Johnson Creek are estimated to experience an increase in sale price of 13.71%, 7.05%, 8.18%, and 3.12%, respectively, from a one mg/L increase in dissolved oxygen levels during the dry season (May–October). Estimates for a 100 count per 100 mL increase in E. coli during the dry season are −2.81% for properties within ¼ mile of Johnson Creek, −0.86% (½ mile), −1.19% (one mile), and −0.71% (greater than one mile). Results for properties in Burnt Bridge Creek include a significantly positive effect for a one mg/L increase in dissolved oxygen levels during the dry season for properties within ½ mile (4.49%), one mile (2.95%), or greater than one mile from the creek (3.17%). Results for other water quality parameters in Burnt Bridge Creek are generally consistent with a priori expectations. Restoration efforts underway in both study areas might be cost justified based on their estimated effect on property sale prices.