The value of the greenbelt in Vienna: a spatial hedonic analysis

Shanaka Herath, Johanna Choumert, Gunther Maier

Publication: Scientific journalJournal articlepeer-review

Abstract

This paper employs the hedonic price method to examine whether the implicit value of the greenbelt is capitalized into apartment prices in the city of Vienna, Austria. We improve the traditional model using spatial econometric techniques and compare the estimates from different spatial models, namely the spatial lag model, the spatial error model, and the spatial Durbin model (SDM). While our use of spatial models addresses the common problem of omitted variable bias, the SDM specifically allows for controlling possible nearby proximity effects (i.e., small-scale neighborhood) that are rarely included in this type of analyses. Findings indicate that distance from the greenbelt is important in explaining apartment prices in Vienna and that the greenbelt exerts a centrifugal force. The SDM is found to be the best performing model indicating the existence of small-scale neighborhood effects and presenting a solid case for the consideration of this model in valuation of green amenities.
Original languageEnglish
Pages (from-to)349 - 374
JournalAnnals of Regional Science
Volume54
Issue number2
DOIs
Publication statusPublished - 2015

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 507026 Economic geography
  • 507
  • 507023 Location development
  • 504004 Population statistics
  • 507016 Regional economy
  • 502017 Logistics
  • 502024 Public economy
  • 502037 Location planning
  • 507011 Spatial research

Cite this