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Modeling Recreational Amenities in an Urban Setting: Location, Congestion, and Substitution Effects


  • Homans, Frances R.
  • Marshall, Elizabeth P.


In this article, we introduce a recreational amenity—a greenbelt park—into a simple urban economic model. For multiple possible park placements, we solve for the associated equilibrium urban structure, including the equilibrium rent gradient, city boundary, total number of park visits, the overall utility level, and total vehicle miles traveled. We examine how these change with alternative park placement sites. We then show how two modifications of the basic model—allowing congestion at the site to affect site quality, and introducing the possibility of a substitute site at the city’s periphery—affect our conclusions about how greenbelt location influences urban structure.

Suggested Citation

  • Homans, Frances R. & Marshall, Elizabeth P., 2008. "Modeling Recreational Amenities in an Urban Setting: Location, Congestion, and Substitution Effects," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
  • Handle: RePEc:ags:arerjl:45670

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    References listed on IDEAS

    1. Duke, Joshua M. & Aull-Hyde, Rhonda, 2002. "Identifying public preferences for land preservation using the analytic hierarchy process," Ecological Economics, Elsevier, vol. 42(1-2), pages 131-145, August.
    2. K. E. McConnell, 1990. "Double Counting in Hedonic and Travel Cost Models," Land Economics, University of Wisconsin Press, vol. 66(2), pages 121-127.
    3. Kent F. Kovacs & Douglas M. Larson, 2007. "The Influence of Recreation and Amenity Benefits of Open Space on Residential Development Patterns," Land Economics, University of Wisconsin Press, vol. 83(4), pages 475-496.
    4. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
    5. Kline, Jeffrey & Wichelns, Dennis, 1998. "Measuring heterogeneous preferences for preserving farmland and open space," Ecological Economics, Elsevier, vol. 26(2), pages 211-224, August.
    6. Colwell, Peter F. & Dehring, Carolyn A. & Turnbull, Geoffrey K., 2002. "Recreation Demand and Residential Location," Journal of Urban Economics, Elsevier, vol. 51(3), pages 418-428, May.
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    Cited by:

    1. Kuminoff, Nicolai V., 2009. "Using a Bundled Amenity Model to Estimate the Value of Cropland Open Space and Determine an Optimal Buffer Zone," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April.
    2. Ioulia Ossokina, 2010. "Geographical range of amenity benefits: Hedonic price analysis for railway stations," CPB Discussion Paper 146, CPB Netherlands Bureau for Economic Policy Analysis.


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