Open space amenities: Is closer better?

The value of open space is often reflected by the higher prices of the homes located in its proximity. But is closer always better? We examine this question by estimating a hedonic regression using pooled crosssectional data from Germany spanning 2007 until 2023. We distinguish two types of open space, parks and protected areas (PAs), and explore heterogeneity in the effects of the latter according to prevailing environmental attitudes, as measured by the share of the Green party vote. Results suggests that increasing distance to parks substantially decreases home prices, with the magnitude of the effect weakening as distance increases. Increasing distance to PAs likewise decreases home prices, but the effect is smaller and hardly varies by distance. More strikingly, we find a negative effect of PAs on prices for homes located within their boundaries, with no evidence that this effect is mediated by the share of Green voters. One possible explanation is that the restrictions that often accompany PAs may offset their amenity value, irrespective of local political support for conservation, a reaction that planners would be wise to anticipate in siting decisions.