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Ecosystems and the spatial morphology of urban residential property value: a multi-scale examination in Finland

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  • Votsis, Athanasios

Abstract

This paper provides evidence for the spatial effects of ecosystems on value formation and differentiation in the urban residential property market. An amenity-based location theory is used in conjunction with hedonic function estimations from the Finnish cities of Helsinki, Espoo and Pori to distinguish between two different ways that ecosystems influence market value: a citywide spatial equilibrium and an additional layer of micro-scale fragmentation. The effect across spatial scales is complemented by two forms of distance decay: a logarithmic decay and a linear dependence on distance to the city centre. Lastly, the estimated marginal values exhibit noticeable temporal variation, even after using de-trended prices. The results highlight the structural role of the ecosystem in the housing market and suggest that the effect of ecosystem services is clearly conditional on the spatiotemporal context, with a visible degree of selectivity to specific services. It is also evident that a realistic understanding of the role of the ecosystem on property value must assess its effects as spatial bundles of services rather than singular flows of one service at a time.

Suggested Citation

  • Votsis, Athanasios, 2014. "Ecosystems and the spatial morphology of urban residential property value: a multi-scale examination in Finland," MPRA Paper 53742, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53742
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    Cited by:

    1. Athanasios Votsis & Adriaan Perrels, 2016. "Housing Prices and the Public Disclosure of Flood Risk: A Difference-in-Differences Analysis in Finland," The Journal of Real Estate Finance and Economics, Springer, vol. 53(4), pages 450-471, November.
    2. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.
    3. Aganbegyan, Abel G. (Аганбегян, Абел), 2017. "What Package Plan up to 2025 does Russia need? [Какой Комплексный План До 2025 Года Нужен России?]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 8-29, August.

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    More about this item

    Keywords

    urban ecosystems; spatial effects; residential property value;
    All these keywords.

    JEL classification:

    • 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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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