Hedonic Analysis

{
  "id": "MLC-T-ENV-013117",
  "term": "Hedonic Analysis",
  "field": "Environment",
  "definition": "1. An economic valuation method that uses statistical methods to decompose the price of an asset by (1) identifying a set of distinct and measurable attributes of the asset, each of which contributes to its value, and (2) estimating the portion of the total asset value that is attributable to each attribute (i.e., the implicit price of each attribute). Hedonic analysis of housing prices is often used to isolate and infer the economic value of ecosystem services provided by specific local environmental amenities to residents (e.g., from open space or good air quality). These amenities are treated as distinct attributes of the homes and separately priced using this method.\n\n2. Economic valuation method that uses statistical methods to decompose the price of an asset by (1) identifying a set of distinct and measurable attributes of the asset, each of which contributes to its value, and (2) estimating the portion of the total asset value that is attributable to each attribute (i.e., the implicit price of each attribute). Hedonic analysis of housing prices is often used to isolate and infer the economic value of ecosystem services provided by specific local environmental amenities to residents (e.g., from open space or good air quality). These amenities are treated as distinct attributes of the homes and separately priced using this method.",
  "subject": "Ecosystems",
  "references": [
    "National Ecosystem Classification System (NESCS) Plus Glossary",
    "NESCS Plus Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/hedonic-analysis/"
}