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Exploring spillover effects of ecological lands: A spatial multilevel hedonic price model of the housing market in Wuhan, China

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  • Liu, Tian
  • Hu, Weiyan
  • Song, Yan
  • Zhang, Anlu

Abstract

This paper attempts to explore the spillover effects of ecological lands, including forest, grassland, wetland, and cultivated land, on housing prices. To this end, we test hypotheses from a spatial multilevel hedonic model in Wuhan, China. We find that forest size and wetland size has a linear positive spillover effect on urban housing prices, and a moderate grassland area and distance from wetland generates positive spillover effect on urban housing prices, while too much or poor grassland area and distance from wetland may not. Also, only cultivated land very proximity to urban residential areas may raise the housing prices, most of the cultivated land in our case may reduce the housing prices. This article contributes to the literature by integrating different ecological lands into the hedonic analysis based on spatial multilevel models and deepens the relationship between the accessibility and visibility of ecological lands and housing prices. This result implies that demand for the forest, grassland, and wetlands can be well reflected in the housing market, while demand for cultivated land is less reflected in the housing market. Our findings urge policymakers to increase the effective supply of ecological lands through urban development planning and maintain the continuous supply of existing ecological lands by implementing market, differential ecological protection mechanisms.

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  • Liu, Tian & Hu, Weiyan & Song, Yan & Zhang, Anlu, 2020. "Exploring spillover effects of ecological lands: A spatial multilevel hedonic price model of the housing market in Wuhan, China," Ecological Economics, Elsevier, vol. 170(C).
    • Handle: RePEc:eee:ecolec:v:170:y:2020:i:c:s0921800919308869
    DOI: 10.1016/j.ecolecon.2019.106568
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    3. Tianzheng Zhang & Yingxiang Zeng & Yingjie Zhang & Yan Song & Hongxun Li, 2020. "Dynamic and Heterogeneous Demand for Urban Green Space by Urban Residents: Evidence from the Cities in China," Sustainability, MDPI, vol. 12(22), pages 1-15, November.
    4. Zambrano-Monserrate, Manuel A. & Ruano, María Alejandra & Yoong-Parraga, Cristina & Silva, Carlos A., 2021. "Urban green spaces and housing prices in developing countries: A Two-stage quantile spatial regression analysis," Forest Policy and Economics, Elsevier, vol. 125(C).
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    7. Meng Yang & Feng Qiu & Juan Tu, 2022. "Premiums for Residing in Unfavorable Food Environments: Are People Rational?," IJERPH, MDPI, vol. 19(12), pages 1-14, June.
    8. Ouyang, Yanyan & Cai, Hongbo & Yu, Xuefei & Li, Zijian, 2022. "Capitalization of social infrastructure into China's urban and rural housing values: Empirical evidence from Bayesian Model Averaging," Economic Modelling, Elsevier, vol. 107(C).
    9. Wu, Chao & Du, Yihao & Li, Sheng & Liu, Pengyu & Ye, Xinyue, 2022. "Does visual contact with green space impact housing pricesʔ An integrated approach of machine learning and hedonic modeling based on the perception of green space," Land Use Policy, Elsevier, vol. 115(C).
    10. Reisig, Dawson & Mullan, Katrina & Hansen, Andrew & Powell, Scott & Theobald, David & Ulrich, Rachel, 2021. "Natural amenities and low-density residential development: Magnitude and spatial scale of influences," Land Use Policy, Elsevier, vol. 102(C).
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    12. Fan Liu & Min Min & Ke Zhao & Weiyan Hu, 2020. "Spatial-Temporal Variation in the Impacts of Urban Infrastructure on Housing Prices in Wuhan, China," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    13. Ahmadova, Gozal & Delgado-Márquez, Blanca L. & Pedauga, Luis E. & Leyva-de la Hiz, Dante I., 2022. "Too good to be true: The inverted U-shaped relationship between home-country digitalization and environmental performance," Ecological Economics, Elsevier, vol. 196(C).
    14. Tan, Ronghui & Xu, Shuxian, 2023. "Urban growth boundary and subway development: A theoretical model for estimating their joint effect on urban land price," Land Use Policy, Elsevier, vol. 129(C).

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