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The Value of a Park in Crises: Quantifying the Health and Wellbeing Benefits of Green Spaces Using Exogenous Variations in Use Values

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  • Krekel, Christian

    (London School of Economics)

  • Goebel, Jan

    (DIW Berlin)

  • Rehdanz, Katrin

    (Kiel University)

Abstract

Most people consider parks important for their quality of life, yet systematic causal evidence is missing. We exploit exogenous variations in their use values to estimate causal effects. Using a representative household panel with precise geographical coordinates of households linked to satellite images of green spaces with a nationwide coverage, we employ a spatial difference-in-differences design, comparing within-individual changes between residents living close to a green space and those living further away. We exploit Covid-19 as exogenous shock. We find that green spaces raised overall life satisfaction while reducing symptoms of anxiety (feelings of nervousness and worry) and depression. There is also suggestive evidence for reduced loneliness. Given the number of people in their surroundings, a compensating-surplus calculation suggests that parks added substantial benefits during the period studied.

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  • Krekel, Christian & Goebel, Jan & Rehdanz, Katrin, 2025. "The Value of a Park in Crises: Quantifying the Health and Wellbeing Benefits of Green Spaces Using Exogenous Variations in Use Values," IZA Discussion Papers 17942, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17942
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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