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The value of the greenbelt in Vienna: a spatial hedonic analysis

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  • Shanaka Herath
  • Johanna Choumert
  • Gunther Maier

Abstract

This paper employs the hedonic price method to examine whether the implicit value of the greenbelt is capitalized into apartment prices in the city of Vienna, Austria. We improve the traditional model using spatial econometric techniques and compare the estimates from different spatial models, namely the spatial lag model, the spatial error model, and the spatial Durbin model (SDM). While our use of spatial models addresses the common problem of omitted variable bias, the SDM specifically allows for controlling possible nearby proximity effects (i.e., small-scale neighborhood) that are rarely included in this type of analyses. Findings indicate that distance from the greenbelt is important in explaining apartment prices in Vienna and that the greenbelt exerts a centrifugal force. The SDM is found to be the best performing model indicating the existence of small-scale neighborhood effects and presenting a solid case for the consideration of this model in valuation of green amenities. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • Shanaka Herath & Johanna Choumert & Gunther Maier, 2015. "The value of the greenbelt in Vienna: a spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 349-374, March.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:2:p:349-374
    DOI: 10.1007/s00168-015-0657-1
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    4. Masood Gheasi & Noriko Ishikawa & Karima Kourtit & Peter Nijkamp, 2019. "A meta-analysis of human health differences in urban and rural environments," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 167-186, December.
    5. Wun-Jheng Wu & Pei-Ing Wu & Je-Liang Liou, 2021. "Boon or Bane: Effect of Adjacent YIMBY or NIMBY Facilities on the Benefit Evaluation of Open Spaces or Cropland," Sustainability, MDPI, vol. 13(7), pages 1-20, April.
    6. Shinsuke Kyoi, 2021. "People’s Avoidance of Neighboring Agricultural Urban Green Infrastructure: Evidence from a Choice Experiment," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    7. Radosław Trojanek, 2016. "The impact of green areas on dwelling prices: the case of Poznań city," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 27-35.
    8. Shanaka Herath, 2021. "Elevating the Value of Urban Location: A Consumer Preference-Based Approach to Valuing Local Amenity Provision," Land, MDPI, vol. 10(11), pages 1-14, November.
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    10. Ulrich B. Morawetz & H. Allen Klaiber, 2022. "Does housing policy impact income sorting near urban amenities? Evidence from Vienna, Austria," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 411-454, October.

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    Keywords

    C31; Q51; R21;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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