Hedonic Pricing

Answer the following questions: Allocate the number of pages accordingly, I would assume that the first question would require half a page-1 page, whereas question 2 would require at least 1.5 pages. I have also attached screenshots of articles and textbook pages that you can refer to in order to answer these questions. These questions are based off of the chapters that I have attached below. Please answer based off the files i’ve attached. I will also be attaching other additional readings related to these and ones that can help to answer these questions. You can use outside sources just for personal knowledge on how to answer these questions however this assignment should not have any sources.

1. Please describe in detail how hedonic pricing is used in the estimation of the value of environmental goods or services. Please provide a specific example of how this methodology would be applied and what potential problems might be with the approach. (please try to be creative and do not use the transportation as an example)

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2. “In early december (2017), trump signed two presidential proclamations to shrink the Bears Ears and Grand Staircase-Escalante national monuments. The proclamations split the two monuments into several smaller sections. Bears Eats (…) will be shrunk from 1.35 million acres to 228,337 (…) and split into two separate monument tsections. Grand Staircase-Escalante (…) will be split into three sections and shrunk from 1.9 million acres to about 1 million. Shrinking the monuments opens the land up for oil and natural gas extraction. Trump said his decision was made to “reverse federal overreach and restore the rights of this land to you citizens.” A group of Native American tribes, conservation groups and others filed suits against the Trump administration over the proclamations.”

Source: https://www.cnn.com/2017/12/30/politics/environmental-policy-moments-2017/index.html

You have been hired to conduct a study assessing and monetizing the loss of social benefits resulting from the shrinking of these two national monuments. Please outline how you would estimate these dis-benefits, specifically the necessary data requirements, processes for collecting data and ways to monetize the policy impacts.

For more information on Hedonic Pricing read this: https://en.wikipedia.org/wiki/Hedonic_regression#

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