The hedonic pricing method is relatively straightforward and uncontroversial to apply, because it is based on actual market prices and fairly easily measured data.
If data are readily available, it can be relatively inexpensive to apply.
Most applications use residential housing prices to estimate the value of environmental amenities.
The results can be used to evaluate agency investments in open space preservation.
For example, specific parcels may be under consideration for protection.
The researcher might collect data on the amount and type of open space within a given radius of each property, and might also note whether a property is directly adjacent to open space.
Often, this type of data may be obtained from computer-based GIS (geographical information systems) maps.Thus, the effects of different characteristics on price can be estimated.The regression results indicate how much property values will change for a small change in each characteristic, holding all other characteristics constant.If the open space of concern is used mainly for recreation, the travel cost method might be used.