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The value of the greenbelt in Vienna: a spatial hedonic analysis

Author

Listed:
  • Shanaka Herath

    (UNSW - University of New South Wales [Sydney])

  • Johanna Choumert

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Gunther Maier

    (Institute for Information Business, Wirtschaftsuniversität Wien (WU Vienna) - Institute for Information Business, Wirtschaftsuniversität Wien - WU Vienna)

Abstract

This paper employs the hedonic price method (HPM) to examine whether the implicit value of the greenbelt is capitalized into apartment prices in the city of Vienna, Austria. We improve the traditional model using spatial econometric techniques and compare estimates from different spatial models, namely the spatial lag model (SAR), the spatial error model (SEM) and the spatial Durbin model (SDM). While our use of spatial models addresses the common problem of omitted variable bias, the SDM specifically allows for controlling possible nearby proximity effects (i.e., small-scale neighbourhood) that are rarely included in this type of analyses. Findings indicate that distance from the greenbelt is important in explaining apartment prices in Vienna: while the CBD exerts a centripetal force, the greenbelt, on the contrary, exerts a centrifugal force. The SDM is found to be the best performing model indicating existence of small-scale neighbourhood effects and presenting a solid case for consideration of this model in valuation of green amenities.

Suggested Citation

  • Shanaka Herath & Johanna Choumert & Gunther Maier, 2015. "The value of the greenbelt in Vienna: a spatial hedonic analysis," CERDI Working papers halshs-00939270, HAL.
    • Handle: RePEc:hal:cdiwps:halshs-00939270
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    2. Polixeni Iliopoulou & Elissavet Feloni, 2022. "Spatial Modelling and Geovisualization of House Prices in the Greater Athens Region, Greece," Geographies, MDPI, vol. 2(1), pages 1-21, February.
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    4. Masood Gheasi & Noriko Ishikawa & Karima Kourtit & Peter Nijkamp, 2019. "A meta-analysis of human health differences in urban and rural environments," Letters in Spatial and Resource Sciences, Springer, vol. 12(3), pages 167-186, December.
    5. Wun-Jheng Wu & Pei-Ing Wu & Je-Liang Liou, 2021. "Boon or Bane: Effect of Adjacent YIMBY or NIMBY Facilities on the Benefit Evaluation of Open Spaces or Cropland," Sustainability, MDPI, vol. 13(7), pages 1-20, April.
    6. Shinsuke Kyoi, 2021. "People’s Avoidance of Neighboring Agricultural Urban Green Infrastructure: Evidence from a Choice Experiment," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    7. Radosław Trojanek, 2016. "The impact of green areas on dwelling prices: the case of Poznań city," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(2), pages 27-35.
    8. Shanaka Herath, 2021. "Elevating the Value of Urban Location: A Consumer Preference-Based Approach to Valuing Local Amenity Provision," Land, MDPI, vol. 10(11), pages 1-14, November.
    9. Matthew Gnagey & Therese Grijalva, 2018. "The impact of trails on property values: a spatial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 73-97, January.
    10. Ulrich B. Morawetz & H. Allen Klaiber, 2022. "Does housing policy impact income sorting near urban amenities? Evidence from Vienna, Austria," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 411-454, October.

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    More about this item

    Keywords

    Greenbelt; open space; urban amenities; hedonic price valuation; Spatial econometrics; spatial Durbin model;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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