| Stream buffers have been well documented as measures that improve water quality and provide wildlife and aquatic habitats. Some communities have adopted stream protection ordinances that require stream buffers or restrict riparian land uses to protect water quality. Other communities are hesitant to adopt ordinances because of the unknown effect the ordinances might have on property values. Property values differ due to the combination of their attributes, such as location, lot size, distance to businesses, and age of house. The hedonic pricing method uses property attributes in a multiple regression analysis to obtain an implicit value for just one of the attributes, in this case, a stream protection ordinance. This study involved two townships in the southern Lower Peninsula of Michigan. Results of the study concluded that riparian property values after the ordinances were adopted were significantly greater than non-riparian and riparian properties before the ordinances were adopted, with all other factors remaining constant. These results suggest that local officials could enact ordinances to protect water quality without fear of decreasing property values. |
