ESTIMATING THE EFFECTS OF SHORELINE CHANGE ON PROPERTY VALUES IN SANDWICH, MA USING A HEDONIC REGRESSION MODEL

Abstract

Shoreline erosion poses a destructive threat to many densely developed coastal areas. This project uses a hedonic regression model to estimate whether or not the risks posed by shoreline change significantly influence property values in Sandwich, MA. Sandwich, MA is a historic town located on the inner reaches of Cape Cod with approximately 7.9 miles of Cape Cod Bay shoreline. Two sets of independent variables were used: 1) structural characteristics describing the physical qualities of a home, and 2) environmental characteristics measuring the risk posed to coastal properties by shoreline erosion. Results show that six of seven environmental variables are significant, including the primary variable of interest, Geotime. These results are compared to Atlantic region results published by The Heinz Center in 2000. Recommendations are made on opportunities to extend and improve the model for use in the future.