A modern application of Hedonics
Beckhusen, Julia Bowman
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A Hedonic analysis is used to estimate the value of irrigation permits to agricultural land in the Flint River Basin, Georgia. A moratorium was established in the end of 1999 that prohibited the issuance of new irrigation withdrawal permits. The moratorium created scarcity both with respect to the total number of permits available and to the total amount of irrigation water available for withdrawal. Agricultural land sales taking place both before and after the moratorium are evaluated using the hedonic method. Results suggest that permitted agricultural land sold after the moratorium was sold for $1,535 more per acre more in Lee County and $868 more per acre in Sumter County.