ECONOMIC-EVALUATION OF AESTHETIC AMENITIES - A CASE-STUDY OF RIVER VIEW

Presence of a river in an urban setting may contribute positively to an aesthetically pleasing environment. Such aesthetic effects are not typically linked to specific economic activities and occur, for example, when residents are exposed to a river-view. Qualities enhancing the aesthetic value of the river include the presence of parks, trails, and vegetation along the riverbanks. The value of aesthetic amenities provided by the South Saskatchewan to the City of Saskatoon residents was estimated in this study using non-market methods. The implicit price of the river view was estimated using the Hedonic Price Model, whereas value through willingness to pay for property taxes or higher rents were also estimated using actual market data. The total annual value of the river to the City of Saskatoon through addition of aesthetic amenities was estimated at $1.2 million in 1989 dollars.