Ecosystems and the spatial morphology of urban residential property value: a multi-scale examination in Finland

Athanasios Votsis

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides evidence for the spatial effects of ecosystems on value formation and differentiation in the urban residential property market. An amenity-based location theory is used in conjunction with hedonic function estimations from the Finnish cities of Helsinki, Espoo and Pori to distinguish between two different ways that ecosystems influence market value: a citywide spatial equilibrium and an additional layer of micro-scale fragmentation. The effect across spatial scales is complemented by two forms of distance decay: a logarithmic decay and a linear dependence on distance to the city centre. Lastly, the estimated marginal values exhibit noticeable temporal variation, even after using de-trended prices. The results highlight the structural role of the ecosystem in the housing market and suggest that the effect of ecosystem services is clearly conditional on the spatiotemporal context, with a visible degree of selectivity to specific services. It is also evident that a realistic understanding of the role of the ecosystem on property value must assess its effects as spatial bundles of services rather than singular flows of one service at a time.

Keywords: urban ecosystems; spatial effects; residential property value (search for similar items in EconPapers)
JEL-codes: C31 Q51 Q57 R31 (search for similar items in EconPapers)
Date: 2014-02
New Economics Papers: this item is included in nep-env, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://mpra.ub.uni-muenchen.de/73702/1/MPRA_paper_73702.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:53742

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