Economic Valuation of Urban Green Spaces across a Socioeconomic Gradient: A South African Case Study

Louis Gerhardus Lategan, Zene Steynberg, Elizelle Juanee Cilliers and Sarel Stephanus Cilliers
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Louis Gerhardus Lategan: Unit for Environmental Sciences and Management, Faculty of Natural and Agricultural Sciences, North-West University, Potchefstroom 2520, South Africa
Zene Steynberg: Unit for Environmental Sciences and Management, Faculty of Natural and Agricultural Sciences, North-West University, Potchefstroom 2520, South Africa
Elizelle Juanee Cilliers: Unit for Environmental Sciences and Management, Faculty of Natural and Agricultural Sciences, North-West University, Potchefstroom 2520, South Africa
Sarel Stephanus Cilliers: Unit for Environmental Sciences and Management, Faculty of Natural and Agricultural Sciences, North-West University, Potchefstroom 2520, South Africa

Land, 2022, vol. 11, issue 3, 1-23

Abstract: Urban green spaces (UGSs) may present economic contributions through increases in proximate property values, encapsulated in the proximity principle (PP). More data on the PP is required from the Global South, where the quality and equitable distribution of UGSs are important considerations. This paper investigates the PP in Potchefstroom, South Africa following a quantitative approach, by statistically analyzing municipal property valuations in three districts differentiated according to their socioeconomic status (SES). Districts are divided into sample areas where three zones are demarcated according to their proximity to a UGS. The results show that property valuations are generally higher for properties in closer proximity to UGSs in lower- and higher-income samples, but are lower in middle-income areas. Neighborhood characteristics and SES, UGS amenity and maintenance, ecosystem services and disservices, domestic garden area and residential property size may be connected to the confirmation or rejection of the PP. The rejection of the PP in middle-income areas indicates a need to improve public UGSs as amenity destinations. The results confirming the PP in low-income areas could incentivize expenditures to improve UGS area and quality to increase the willingness to pay for proximity to such spaces and, reciprocally, increase revenue from municipal property taxes.

Keywords: green infrastructure; environmental justice; property values; proximity principle; socioeconomic status; Global South (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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