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Is all space created equal? Uncovering the relationship between competing land uses in subdivisions

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  • Abbott, Joshua K.
  • Klaiber, H. Allen

Abstract

Evaluating the importance of different forms of open space to households requires an evaluation of the service flows provided by each type of open space. For many non-market goods, these flows occur over multiple spatial scales and require analysis that simultaneously accounts for capitalization at each scale. To meet this often overlooked need, we apply a newly developed extension to the Hausman-Taylor model that treats multiple housing transactions occurring in a spatial location as a panel. This methodology allows us to account for omitted variables within a subdivision while instrumenting for variables identified through differences between subdivisions. We measure capitalization of open space at three distinct spatial extents: adjacency, walkability, and subdivision-wide. We find that the interactions between subdivision open space and private open space in the form of lot size change from complementarity at small scales to substitutability at large scales. These results confirm much of the intuition developed by ecologists and public planners on the likely service flows associated with open space and show how our approach to accounting for multiple spatial scales of capitalization in the evaluation of non-market goods could be beneficial to other areas of applied research.

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  • Abbott, Joshua K. & Klaiber, H. Allen, 2010. "Is all space created equal? Uncovering the relationship between competing land uses in subdivisions," Ecological Economics, Elsevier, vol. 70(2), pages 296-307, December.
  • Handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:296-307
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    Cited by:

    1. Zipp, Katherine Y. & Lewis, David J. & Provencher, Bill, 2017. "Does the conservation of land reduce development? An econometric-based landscape simulation with land market feedbacks," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 19-37.
    2. repec:eee:forpol:v:83:y:2017:i:c:p:29-35 is not listed on IDEAS
    3. Liu, Xiangping & Taylor, Laura O. & Hamilton, Timothy L. & Grigelis, Peter E., 2013. "Amenity values of proximity to National Wildlife Refuges: An analysis of urban residential property values," Ecological Economics, Elsevier, vol. 94(C), pages 37-43.
    4. Yoo, James & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J. & Kinzig, Ann P. & Perrings, Charles, 2013. "The value of agricultural water rights in agricultural properties in the path of development," Ecological Economics, Elsevier, vol. 91(C), pages 57-68.
    5. Kathrine von Graevenitz & Toke Emil Panduro, 2015. "An Alternative to the Standard Spatial Econometric Approaches in Hedonic House Price Models," Land Economics, University of Wisconsin Press, vol. 91(2), pages 386-409.
    6. Wolf, David & Klaiber, H. Allen, 2017. "Bloom and bust: Toxic algae's impact on nearby property values," Ecological Economics, Elsevier, vol. 135(C), pages 209-221.
    7. Howard, Peter H., 2012. "Climate Change, Vegetation, and Welfare: Estimating the Welfare Loss to Landowners of Marginal Shifts in Blue Oak Habitat," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124744, Agricultural and Applied Economics Association.
    8. repec:eee:ecolec:v:141:y:2017:i:c:p:202-212 is not listed on IDEAS
    9. Abbott, Joshua K. & Allen Klaiber, H., 2013. "The value of water as an urban club good: A matching approach to community-provided lakes," Journal of Environmental Economics and Management, Elsevier, vol. 65(2), pages 208-224.
    10. Abbott, Joshua K. & Klaiber, H. Allen, 2011. "The Value Of Water As An Urban Club Good: A Matching Approach To Hoa-Provided Lakes," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103781, Agricultural and Applied Economics Association.
    11. Yoo, James & Perrings, Charles & Kinzig, Ann & Abbott, Joshua K. & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J., 2012. "The Value of Water Rights in Agricultural Properties in the Phoenix Active Management Area," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124095, Agricultural and Applied Economics Association.
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    13. repec:ucp:jaerec:doi:10.1086/692842 is not listed on IDEAS
    14. H. Allen Klaiber & Joshua K. Abbott & V. Kerry Smith, 2017. "Some Like It (Less) Hot: Extracting Trade-Off Measures for Physically Coupled Amenities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(4), pages 1053-1079.
    15. Yoo, James & Simonit, Silvio & Connors, John P. & Kinzig, Ann P. & Perrings, Charles, 2014. "The valuation of off-site ecosystem service flows: Deforestation, erosion and the amenity value of lakes in Prescott, Arizona," Ecological Economics, Elsevier, vol. 97(C), pages 74-83.
    16. JunJie Wu & Wenchao Xu & Ralph J. Alig, 2016. "How Do the Location, Size and Budget of Open Space Conservation Affect Land Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 52(1), pages 73-97, January.
    17. JunJie Wu & Wenchao Xu & Ralph Alig, 2016. "How Do the Location, Size and Budget of Open Space Conservation Affect Land Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 52(1), pages 73-97, January.

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