The costs and benefits of providing open space in cities
AbstractWe use the monocentric model of a city to derive a simple cost-benefit rule for the optimal provision of open space. Although many researchers have investigated the value of open space in cities, few of them have compared it to the costs of providing this amenity. The rule derived here is essentially the Samuelson-condition for the optimal provision of a public good, with the price of land as the appropriate indicator for its cost. The condition is made operational by computing the willingness to pay for public and private space on the basis of empirical hedonic price functions for three Dutch cities. The conclusions with respect to the optimal provision of open space differ between the three cities. Further investigation reveals that willingness to pay for parks and public gardens increases with income, although not as fast as that for private residential space.
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Bibliographic InfoPaper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 98.
Date of creation: Jan 2008
Date of revision:
Other versions of this item:
- Jan Rouwendal & J. Willemijn van der Straaten, 2008. "The Costs and Benefits of Providing Open Space in Cities," Tinbergen Institute Discussion Papers 08-001/3, Tinbergen Institute.
- R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-09 (All new papers)
- NEP-GEO-2008-02-09 (Economic Geography)
- NEP-TUR-2008-02-09 (Tourism Economics)
- NEP-URE-2008-02-09 (Urban & Real Estate Economics)
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