MEASURING AMENITY BENEFITS FROM FARMLAND - HEDONIC PRICING VS. CONTINGENT VALUATION

The amenity value to Kentucky residents from horse farm land was estim ated using both the contingent valuation method and the hedonic pricin g method. The hedonic pricing model included both the housing and labo r markets, A value function estimated from dichotomous choice continge nt valuation responses showed that the value of a change in the level of the horse farm amenity was sensitive to the size of the change, wit h no evidence of value that is independent of the size of the change. The two methods generated estimates of the external benefits from hors e farm land that were within 20 percent of each other.