Social and Behavioral Sciences Commons^™

Estimating The Impact Of Critical Habitat Designation On The Values Of Developed And Undeveloped Parcels (2nd Version, Current As Of 7/29/2022), Saleh Mamun, Erik Nelson, Christoph Nolte

Economics Department Working Paper Series

We use differences-in-differences (DD) estimators to measure the impact that Endangered Species Act (ESA)’s Critical Habitat (CH) rule had on developed and undeveloped parcel prices throughout the US between 2000 and 2019. In a national-level analysis we found that, on average, the price of parcels “treated” with CH were not statistically different than the prices of nearby parcels in listed species range space but not “treated” by CH. CH’s null impact on developed parcel prices is surprising given homeowner’s documented willingness to pay for property surrounded by protected open space. CH’s null impact on undeveloped parcel prices is surprising as …