This study uses a hedonic property price method to estimate how wetlands
affect residential property values in a rural area. The study utilizes
wetland inventory data coupled with extensive property sales records between
January 2000 and September 2004 from Carteret County, NC. Our results
indicate that i) a higher wetland percentage within a quarter mile of a
property, ii) closer proximity to the nearest wetland, and iii) larger size
of the nearest wetland are associated with lower residential property
values. These results contrast with previous hedonic studies that use data
from urban areas, which found positive associations between wetlands and
property values. The amenity value of wetlands appears to depend at least as
much on the characteristics of the area being considered as it does on the
characteristics of the wetlands.