The value of urban tree cover: A hedonic property price model in Ramsey and Dakota Counties, Minnesota, USA
Abstract
Urban tree cover benefits communities. These benefits' economic values, however, are poorly recognized and often ignored by landowners and planners. We use hedonic property price modeling to estimate urban tree cover's value in Dakota and Ramsey Counties, MN, USA, predicting housing value as a function of structural, neighborhood, and environmental variables, including tree cover, using a spatial simultaneous autoregressive (SAR) error model. We measure tree cover as percent tree cover on parcels, and within 100, 250, 500, 750, and 1000Â m. Results show that tree cover within 100 and 250Â m is positive and statistically significant. A 10% increase in tree cover within 100Â m increases average home sale price by $1371 (0.48%) and within 250Â m increases sale price by $836 (0.29%). In a model including both linear and squared tree cover terms, tree cover within 100 and 250Â m increases sale price to 40-60% tree cover. Beyond this point increased tree cover contributes to lower price. Tree cover beyond 250Â m did not contribute significantly to sale price. These results suggest significant positive effects for neighborhood tree cover, for instance, for the shading and aesthetic quality of tree-lined streets, indicating that tree cover provides positive neighborhood externalities.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Ecological Economics.
Volume (Year): 69 (2010)
Issue (Month): 8 (June)
Pages: 1646-1656
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Web page: http://www.elsevier.com/locate/ecolecon
Related research
Keywords: Hedonic pricing Urban forestry Tree cover;References
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- Vesely, Eva-Terezia, 2007. "Green for green: The perceived value of a quantitative change in the urban tree estate of New Zealand," Ecological Economics, Elsevier, vol. 63(2-3), pages 605-615, August.
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Citations
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- Pandit, Ram & Polyakov, Maksym & Sadler, Rohan, 2012. "The importance of tree cover and neighbourhood parks in determining urban property values," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124357, Australian Agricultural and Resource Economics Society.
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