Economics at your fingertips  

Eliciting preferences for urban parks

Toke Emil Panduro, Cathrine Ulla Jensen, Thomas Hedemark Lundhede, Kathrine von Graevenitz () and Bo Jellesmark Thorsen

Regional Science and Urban Economics, 2018, vol. 73, issue C, 127-142

Abstract: The hedonic pricing method has been used extensively to obtain implicit prices for availability of urban green space, but few have obtained households' preference parameters. We elicit preferences and estimate willingness to pay functions for park availability in Copenhagen using an approach that places identifying restrictions on the utility function. We do this for two different measures of park availability and examine sources of preference heterogeneity. We find that the implicit price of another hectare of park within a 1000 m radius is 53.25 EUR per ha per year for the average apartment corresponding to an increase in annual rent of 0.33% per additional ha. For reducing distance to the nearest park by a meter, the price is 0.59 EUR per meter per year, corresponding to an increase in annual rent of 0.03‰ per meter. We apply our results to a policy scenario reducing the park area available in an area of central Copenhagen and show how estimates of aggregate welfare changes are highly sensitive to the measure of park availability applied. The findings stress the importance of paying attention to how public goods are defined when undertaking welfare economic policy analyses.

Keywords: Hedonic house price model; Green space; Preference heterogeneity identification (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-03-31
Handle: RePEc:eee:regeco:v:73:y:2018:i:c:p:127-142