Efficient allocation of water requires knowledge of water’s value in both consumptive
nonconsumptive uses. This study estimates the marginal value of water in lake recreational
aesthetic (RA) use. An hedonic price equation (employing the Box-Cox functional form)
lake front location, distance to lake, and scenic view are significant RA characteristics
Water front properties command a premium price for the private access they offer.
water front, the marginal RA price falls rapidly with increasing distance, becoming
some minimum. Twenty-two percent of housing price is found to be attributable to