IDEAS home Printed from https://ideas.repec.org/p/ags/aaea13/150634.html
   My bibliography  Save this paper

Maintaining Public Goods: Household Valuation of New and Renovated Local Parks

Author

Listed:
  • Livy, Mitchell R.
  • Klaiber, H. Allen

Abstract

This study re-examines household valuation of local parks to assess the value afforded to specific amenities contained within parks and how those amenities change over time. A large body existing literature studying local parks has found single family residential homeowners are surprisingly willing to pay very little to live in close proximity to these parks. Building on this research, we hypothesize that these results are driven by bundling both positive and negative features of local parks into a single amenity and that these amenities are likely to degrade over time reducing their value. We implement property fixed effects models to investigate if unbundling park attributes leads to significantly different willingness to pay insights relative to much of the existing literature using a unique dataset on park renovations. Using renovation data and a rich set of housing transactions, we further explore whether the values placed on specific park attributes change over time, consistent with a depreciating public asset.

Suggested Citation

  • Livy, Mitchell R. & Klaiber, H. Allen, 2013. "Maintaining Public Goods: Household Valuation of New and Renovated Local Parks," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150634, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:150634
    DOI: 10.22004/ag.econ.150634
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/150634/files/Renovating%20Parks.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.150634?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Margot Lutzenhiser & Noelwah R. Netusil, 2001. "The Effect Of Open Spaces On A Home'S Sale Price," Contemporary Economic Policy, Western Economic Association International, vol. 19(3), pages 291-298, July.
    2. Parsons, George R., 1992. "The effect of coastal land use restrictions on housing prices: A repeat sale analysis," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 25-37, January.
    3. Carolyn Kousky, 2010. "Learning from Extreme Events: Risk Perceptions after the Flood," Land Economics, University of Wisconsin Press, vol. 86(3).
    4. Heimlich, Ralph E. & Anderson, William D., 2001. "Development At The Urban Fringe And Beyond: Impacts On Agriculture And Rural Land," Agricultural Economic Reports 33943, United States Department of Agriculture, Economic Research Service.
    5. Elena G. Irwin, 2002. "The Effects of Open Space on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 78(4), pages 465-480.
    6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    7. Elena G. Irwin & Nancy E. Bockstael, 2001. "The Problem of Identifying Land Use Spillovers: Measuring the Effects of Open Space on Residential Property Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 698-704.
    8. Kuminoff, Nicolai V. & Zhang, Congwen & Rudi, Jeta, 2010. "Are Travelers Willing to Pay a Premium to Stay at a “Green” Hotel? Evidence from an Internal Meta-Analysis of Hedonic Price Premia," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(3), pages 1-17, October.
    9. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    10. Allen Klaiber, H. & Phaneuf, Daniel J., 2010. "Valuing open space in a residential sorting model of the Twin Cities," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 57-77, September.
    11. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
    12. Smith, V. Kerry & Poulos, Christine & Kim, Hyun, 2002. "Treating open space as an urban amenity," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 107-129, February.
    13. Acharya, Gayatri & Bennett, Lynne Lewis, 2001. "Valuing Open Space and Land-Use Patterns in Urban Watersheds," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 221-237, March-May.
    14. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    15. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-675, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Margaret Walls & Carolyn Kousky & Ziyan Chu, 2015. "Is What You See What You Get? The Value of Natural Landscape Views," Land Economics, University of Wisconsin Press, vol. 91(1), pages 1-19.
    2. Liu, Hongxing & Gopalakrishnan, Sathya & Browning, Drew & Sivandran, Gajan, 2019. "Valuing water quality change using a coupled economic-hydrological model," Ecological Economics, Elsevier, vol. 161(C), pages 32-40.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abbott, Joshua K. & Klaiber, H. Allen, 2010. "Is all space created equal? Uncovering the relationship between competing land uses in subdivisions," Ecological Economics, Elsevier, vol. 70(2), pages 296-307, December.
    2. Poudyal, Neelam C. & Hodges, Donald G. & Tonn, Bruce & Cho, Seong-Hoon, 2009. "Valuing diversity and spatial pattern of open space plots in urban neighborhoods," Forest Policy and Economics, Elsevier, vol. 11(3), pages 194-201, May.
    3. Margaret Walls & Carolyn Kousky & Ziyan Chu, 2015. "Is What You See What You Get? The Value of Natural Landscape Views," Land Economics, University of Wisconsin Press, vol. 91(1), pages 1-19.
    4. Irwin, Nicholas B. & Klaiber, H. Allen & Irwin, Elena G., 2017. "Do Stormwater Basins Generate co-Benefits? Evidence from Baltimore County, Maryland," Ecological Economics, Elsevier, vol. 141(C), pages 202-212.
    5. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    6. Beal-Hodges, Mary, 2012. "Conservation land acquisition lists and nearby property values: evidence from the Florida Forever programme," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 114(1), pages 1-8.
    7. Tuttle, Carrie M. & Heintzelman, Martin D., 2013. "The Value of Forever Wild: An Economic Analysis of Land Use in the Adirondacks," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(1), pages 119-138, April.
    8. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," SOI - Working Papers 0710, Socioeconomic Institute - University of Zurich.
    9. Seong-Hoon Cho & Christopher D. Clark & William M. Park & Seung Gyu Kim, 2009. "Spatial and Temporal Variation in the Housing Market Values of Lot Size and Open Space," Land Economics, University of Wisconsin Press, vol. 85(1), pages 51-73.
    10. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    11. Hu, Ziwei & Swallow, Brent & Qiu, Feng, 2021. "Measuring the Amenity Value of Urban Open Space Using a Spatial Hedonic Approach: The Case of Edmonton, Canada," 2021 Conference, August 17-31, 2021, Virtual 315287, International Association of Agricultural Economists.
    12. Robert Kling & T. Findley & Emin Gahramanov & David Theobald, 2015. "Hedonic valuation of land protection methods: implications for cluster development," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(4), pages 782-806, October.
    13. Neil Metz, 2017. "Value for Open Space: Protection and Access Level," Growth and Change, Wiley Blackwell, vol. 48(1), pages 127-152, March.
    14. Wenjie Wu, 2012. "Spatial Variations in Amenity Values: New Evidence from Beijing, China," SERC Discussion Papers 0113, Centre for Economic Performance, LSE.
    15. Sanglim Yoo & John E. Wagner, 2016. "A review of the hedonic literatures in environmental amenities from open space: a traditional econometric vs. spatial econometric model," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 20(1), pages 141-166, March.
    16. Delores Conway & Christina Li & Jennifer Wolch & Christopher Kahle & Michael Jerrett, 2010. "A Spatial Autocorrelation Approach for Examining the Effects of Urban Greenspace on Residential Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 41(2), pages 150-169, August.
    17. Yoo, James & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J. & Kinzig, Ann P. & Perrings, Charles, 2013. "The value of agricultural water rights in agricultural properties in the path of development," Ecological Economics, Elsevier, vol. 91(C), pages 57-68.
    18. Zipp, Katherine Y. & Lewis, David J. & Provencher, Bill, 2017. "Does the conservation of land reduce development? An econometric-based landscape simulation with land market feedbacks," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 19-37.
    19. JunJie Wu & Wenchao Xu & Ralph Alig, 2016. "How Do the Location, Size and Budget of Open Space Conservation Affect Land Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 52(1), pages 73-97, January.
    20. Seth B. Payton & John R. Ottensmann, 2015. "The implicit price of urban public parks and greenways: a spatial-contextual approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 58(3), pages 495-512, March.

    More about this item

    Keywords

    Community/Rural/Urban Development; Consumer/Household Economics; Public Economics; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:150634. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.