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Valuing public and private urban tree canopy cover

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  • Pandit, Ram
  • Polyakov, Maksym
  • Sadler, Rohan

Abstract

In this paper, we estimate the effect of tree canopy cover on sales price of urban residential properties in Perth, Western Australia. Using a data set of 5606 single family homes sold in 2009 and a spatial hedonic model with three spatial effects – spatial-temporal lag on dependent variable, spatial error, and spatially lagged independent variables – we estimated the location-specific effect of tree canopy cover. Tree canopy cover increases the property value when located on adjacent public space, but decreases the value when it is on own property and on the adjacent property within 20 m of property boundary. The results are suggestive that council urban tree planting programs provide significant private benefits to homeowners.

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  • Pandit, Ram & Polyakov, Maksym & Sadler, Rohan, 2014. "Valuing public and private urban tree canopy cover," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    • Handle: RePEc:ags:aareaj:262412
    DOI: 10.22004/ag.econ.262412
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    Cited by:

    1. Saloomeh Akbari & Maksym Polyakov & Md Sayed Iftekhar, 2023. "Capitalised nonmarket benefits of multifunctional water‐sensitive urban infrastructure: A case of living streams," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 524-540, October.
    2. Roberto Evangelio & Simon Hone & Moses Lee & David Prentice, 2019. "What Makes a Locality Attractive? Estimates of the Amenity Value of Parks for Victoria," Economic Papers, The Economic Society of Australia, vol. 38(3), pages 182-192, September.
    3. Plant, Lyndal & Rambaldi, Alicia & Sipe, Neil, 2017. "Evaluating Revealed Preferences for Street Tree Cover Targets: A Business Case for Collaborative Investment in Leafier Streetscapes in Brisbane, Australia," Ecological Economics, Elsevier, vol. 134(C), pages 238-249.
    4. Polyakov, Maksym & Iftekhar, Md Sayed & Fogarty, James & Buurman, Joost, 2022. "Renewal of waterways in a dense city creates value for residents," Ecological Economics, Elsevier, vol. 199(C).
    5. Alba Miñano-Mañero, 2024. "When are D-graded neighborhoods not degraded? Greening the legacy of redlining," Working Papers REM 2024/0353, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    6. Lyndal Plant & Alicia N. Rambaldi & Neil Sipe, 2016. "Property value returns on investment in street trees: a business case for collaborative investment in Brisbane, Australia," Discussion Papers Series 563, School of Economics, University of Queensland, Australia.
    7. Qiwei Song & Yifeng Liu & Waishan Qiu & Ruijun Liu & Meikang Li, 2022. "Investigating the Impact of Perceived Micro-Level Neighborhood Characteristics on Housing Prices in Shanghai," Land, MDPI, vol. 11(11), pages 1-21, November.
    8. Polyakov, Maksym & Fogarty, James & Zhang, Fan & Pandit, Ram & Pannell, David J., 2015. "The value of restoring urban drains to living streams," Working Papers 206300, University of Western Australia, School of Agricultural and Resource Economics.
    9. Stromberg, Per M. & Öhrner, Erik & Brockwell, Erik & Liu, Zhaoyang, 2021. "Valuing urban green amenities with an inequality lens," Ecological Economics, Elsevier, vol. 186(C).

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