Does the measurement of environmental quality affect implicit prices estimated from hedonic models?

Hedonic property value models are often used to derive point estimates for identifying the relationship between environmental quality and property pri ces. The measurement of the environmental quality variable is often selecte d based on convenience, but variables reflecting different perceptions abou t environmental quality may result in implicit prices that vary substantial ly. This case study derives implicit prices for nine measures of water clar ity using hedonic property value models of lakefront properties in Maine. R esults show that water clarity variables based on different perceptions may result in differences in implicit prices large enough to potentially affec t policy decisions.