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 language | English |
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Pages (from-to) | 349 - 374 |
Journal | Annals of Regional Science |
Volume | 54 |
Issue number | 2 |
DOIs | |
Publication status | Published - 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