Abstract
This study investigates the connection between river riparian buffers and property values. The buffers protect the integrity of aquatic ecosystems and support resilience to rising temperatures and severe storms due to climate change. A hedonic study using 18,782 property sales was conducted to estimate the value of riverfront land and forested riparian buffers along the New and Watauga Rivers in North Carolina. Property owners place a significant value on river frontage and the associated amenities - 30% of a riverfront property value is attributable to the river frontage, about $133,653 of a mean property value of $445,510. Owners of river-front properties value forested riparian buffers but there is a catch, they do not want all the riparian buffer on their land forested. Property sale prices increase as the percentage of the riparian buffer that is forested increases and prices are maximized at 40% tree cover. At 40% tree cover, 37% property sale prices are attributable to riparian tree cover. However, with 100% tree cover property values are reduced by about $175,000 relative to an average priced property with no riparian tree cover. The results can help government agencies and NGOs interested in riverine ecosystem resilience in the face of development and climate change to motivate revegetation of riparian buffers with limited tree cover; it is in the financial, and esthetic, interest of landowners to increase the forested portion of their riparian buffer. If extensive tree cover is desired, say greater than 50% forested, landowner education and revegetation cost-sharing programs are unlikely to provide sufficient incentives to garner landowner participation and more sophisticated programing is required.