ESTIMATING THE AMENITY VALUE OF RAINFALL

The amenity value of two measures of rainfall are investigated in this study: long term average annual rainfall and the variation in rainfal l within the year. Estimates of the economic value of rainfall and var iation in rainfall are found using the hedonic property value techniqu e. The results indicate that rainfall is an attribute for which the di stribution as well as the average annual level is important. Home buye rs prefer less annual rainfall, but, holding annual rainfall constant, buyers will also pay more for greater seasonal variation in rainfall.