Assessment of the Spatial Variation of the Economic Benefits of Urban Green Spaces in a Highly Urbanized Area

Urban green spaces play a vital role in improving the quality of life and well-being of urban residents. However, their economic benefits in different spatial contexts within highly urbanized areas remain a critical yet understudied topic. This study delves into the economic value of urban green spaces in Cheongju City, Republic of Korea, and investigates the distance-decay features associated with the proximity of green spaces to residential properties. Two spatial econometric models were employed to address these questions: the spatially autoregressive (SAR) model and the generalized additive model (GAM). The SAR model was used to assess the economic benefits of urban green spaces, whereas the distance decay of these benefits was examined with the GAM. Empirical analyses revealed that small-sized parks or forests under 20 ha hold greater economic value when in proximity to residential areas compared to medium-sized parks or forests between 20 and 200 ha. Conversely, large parks or forests over 200 ha appeared to have a disamenity effect, negatively impacting property prices when in close proximity. The GAM’s smooth functions illustrated that the distance-decay effect was shorter for small-sized green spaces and exhibited an inverted U-shape for large-sized ones, resulting in a negative benefit of proximity. Our findings suggest that urban green spaces have a positive impact on property prices, but this effect may not apply uniformly to large-sized parks or forests. Therefore, to enhance the residents’ welfare, green infrastructure policies should prioritize the provision of accessible small- and/or medium-sized parks or forests near residential areas.