Graduate Abstract

Carole Ann Rolins
Summer 2007

Valuing a Private Environmental Good: Revealed versus stated preferences

by

Carole Ann Rolins

Bachelor of Science
University of California, Berkeley
1971

Bachelor of Arts
University of Berkeley
1971

A Thesis submitted in partial fulfillment
of the requirement for the degree of

Doctor of Philosophy Degree
Department of Environmental Studies
Greenspun College of Urban Affairs

Summer 2007

Thesis Adviser: Dr. Helen Neill
Examination Committee Chair Associate
Professor of Environmental Studies
University of Nevada, Las Vegas

ABSTRACT

To reduce outdoor water-use, water management agencies in the southwestern United States are encouraging the use of xeriscape and the reduction of turf in landscaping through incentives and educational programs designed to promote water-conservation. The purpose of this dissertation is to estimate xeriscape values with two methods in order to make comparisons. The hedonic price method (HPM) provides estimates of revealed preference values indirectly. The contingent valuation method (CVM) obtains estimates directly through stated preferences. Clark County, Nevada, is the study site examined in this research. Both the HPM and CVM provide positive estimates for xeriscape that are significantly greater than 0 at the 1 percent level of significance, thus confirming the value of xeriscape as an amenity. The HPM values are greater than the CVM values, which are similar to results of previous validation studies for other environmental amenities. The results contribute to the existing literature by comparing non-market method results for a private good, as well as providing water management agencies with additional information for decision-making.