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The greener, the happier? the effect of urban land use on residential well-being

Author

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  • Krekel, Christian
  • Kolbe, Jens
  • Wüstemann, Henry

Abstract

We investigate the effect of urban land use on residential well-being in major German cities, using panel data from the German Socio-Economic Panel and cross-section data from the European Urban Atlas. We reduce concerns about endogeneity by employing fixed-effects (within) estimators, with individual and city of residence fixed effects, while controlling for a rich set of observables. The results show that access to green urban areas, such as gardens and parks, is positively associated with, whereas access to abandoned areas, such as waste or leftover land, is negatively associated with life satisfaction. The effects are strongest for residents who are older, accounting for up to a third of the size of the effect of being unemployed on life satisfaction. We calculate the marginal willingness-to-pay of residents in order to have access to green urban and abandoned areas in their surroundings, as well as the life-satisfaction maximising amounts of them. Finally, we provide a policy case study, while discussing limitations and avenues for future research.

Suggested Citation

  • Krekel, Christian & Kolbe, Jens & Wüstemann, Henry, 2016. "The greener, the happier? the effect of urban land use on residential well-being," LSE Research Online Documents on Economics 101389, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:101389
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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