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The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method

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Author Info

  • Pearson, L. J.

    (Sinclair Knight Merz, Malvern VIC 3144)

  • Tisdell, C.

    (School of Economics, University of Queensland)

  • Lisle, A. T.

    (School of Economics, University of Queensland)

Abstract

This study deals with the valuation of a National Park in an urban area. The hedonic price method is used to estimate the impact of the headland section of Noosa National Park (NNP) on nearby unimproved land values. Unimproved land values of 641 house blocks surrounding NNP were used in a variety of regressions to provide values for both proximity and view of the park. The study found that a glimpse of NNP generates an increase of 7% in the land value. However, being in close walking distance to NNP has little impact upon the value of land. Properties located south of NNP headland were found to be valued at only 85% of comparable properties to the north. The variables with the greatest impact on price are direct distance to the ocean and a view of the ocean. If properties are closer to another urban park (not a national park), there is a strong negative relationship between price and distance to the park. But properties closest to NNP do not experience this relationship. It is suggested that disamenities of such a well-known park, including parking problems and "unsavory characters" may result in the direct distance to NNP not being a significant explanatory variable in relation to price. This information is useful to local governments with national parks within their borders who want to estimate the value of the park to their area, e.g. in relation to rates.

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Bibliographic Info

Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

Volume (Year): 32 (2002)
Issue (Month): 2 (June Special Issue)
Pages: 155-171

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Handle: RePEc:eap:articl:v:32:y:2002:i:2:p:155-171

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Related research

Keywords: Hedonic; Land Value;

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References

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  1. Stanley W. Hamilton & Gregory M. Schwann, 1995. "Do High Voltage Electric Transmission Lines Affect Property Value?," Land Economics, University of Wisconsin Press, vol. 71(4), pages 436-444.
  2. Brent L. Mahan & BStephen Polasky & Richard M. Adams, 2000. "Valuing Urban Wetlands: A Property Price Approach," Land Economics, University of Wisconsin Press, vol. 76(1), pages 100-113.
  3. Paul M. Jakus & Paul B. Siegel, 1997. "The Effect of Individual and Community Attributes On Residents' Attitudes Toward Tourism-Based Development," The Review of Regional Studies, Southern Regional Science Association, vol. 27(1), pages 49-64, Summer.
  4. J. Walter Milon & Jonathan Gressel & David Mulkey, 1984. "Hedonic Amenity Valuation and Functional Form Specification," Land Economics, University of Wisconsin Press, vol. 60(4), pages 378-387.
  5. Ben C. Arimah, 1992. "An Empirical Analysis of the Demand for Housing Attributes in a Third World City," Land Economics, University of Wisconsin Press, vol. 68(4), pages 366-379.
  6. S. B. Kask & S. A. Maani, 1992. "Uncertainty, Information, and Hedonic Pricing," Land Economics, University of Wisconsin Press, vol. 68(2), pages 170-184.
  7. Benson, Earl D, et al, 1998. "Pricing Residential Amenities: The Value of a View," The Journal of Real Estate Finance and Economics, Springer, vol. 16(1), pages 55-73, January.
  8. Doss, Cheryl R. & Taff, Steven J., 1996. "The Influence Of Wetland Type And Wetland Proximity On Residential Property Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), July.
  9. George Galster & Yolonda Williams, 1994. "Dwellings for the Severely Mentally Disabled and Neighborhood Property Values: The Details Matter," Land Economics, University of Wisconsin Press, vol. 70(4), pages 466-477.
  10. Tisdell, Clem A. & Pearson, Leonie, 2001. "Analysis of Property Values, Local Government Finances and Reservation of Land for National Parks and Similar Purposes," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 31(2), pages 175-185, September.
  11. Do, A. Quang & Sirmans, C. F., 1994. "Residential Property Tax Capitalization: Discount Rate Evidence from California," National Tax Journal, National Tax Association, vol. 47(2), pages 341-48, June.
  12. Colwell, Peter F, 1991. "Functional Obsolescence and an Extension of Hedonic Theory," The Journal of Real Estate Finance and Economics, Springer, vol. 4(1), pages 49-58, March.
  13. Cassel, Eric & Mendelsohn, Robert, 1985. "The choice of functional forms for hedonic price equations: Comment," Journal of Urban Economics, Elsevier, vol. 18(2), pages 135-142, September.
  14. Palmquist, Raymond B., 1988. "Welfare measurement for environmental improvements using the hedonic model: The case of nonparametric marginal prices," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 297-312, September.
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Citations

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Cited by:
  1. Tisdell, Clement A., 2003. "Valuation of Tourism's Natural Resources," Economics, Ecology and Environment Working Papers 48962, University of Queensland, School of Economics.
  2. Steve Gibbons & Susana Mourato & Guilherme Resende, 2011. "The amenity value of English nature: a hedonic price approach," LSE Research Online Documents on Economics 33594, London School of Economics and Political Science, LSE Library.
  3. Tisdell, Clem A. & Pearson, Leonie, 2001. "Analysis of Property Values, Local Government Finances and Reservation of Land for National Parks and Similar Purposes," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 31(2), pages 175-185, September.
  4. Concu, Giovanni B., 2007. "Investigating distance effects on environmental values: a choice modelling approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), June.
  5. Hajkowicz, Stefan, 2007. "Allocating scarce financial resources across regions for environmental management in Queensland, Australia," Ecological Economics, Elsevier, vol. 61(2-3), pages 208-216, March.
  6. Pia Nilsson, 2011. "Cultural Landscape Characteristics and Heritage Values A Spatially Explicit Hedonic Approach," ERSA conference papers ersa10p397, European Regional Science Association.

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