Review of the effects of conservation easements on surrounding property values

Abstract

This paper reviews the effects of conservation easements (CEs) on surrounding property values. From the literature, key variable characteristics of CEs that influence surrounding property value are development potential, proximity, and the effect of forest composition and characteristics. Overall, proximity to CEs was found to increase surrounding property values. The tax implications of CEs were also examined. The effect of municipal services, the effect of housing demand, and the potential for self-financing for additional CEs were discussed. CEs were largely found to increase tax revenue by increasing surrounding property values and have the potential for self-financing if designed properly.