VALUING THE “GREEN” AMENITIES IN A SPATIAL CONTEXT

Authors


  • The authors thank the editors and reviewers. We are grateful to Paul Cheshire, Steve Gibbons, Henry Overman, and Olmo Silva for thorough discussions, detailed feedback, and encouragement. We also thank conference/seminar participants at the London School of Economics, University of Glasgow, the 2011 British-Irish Meetings of the RSAI (Cardiff), and the 2012 Workshop of Regional, Urban and Spatial Economics in China (Guangzhou) for helpful comments and suggestions. Wenjie Wu thanks the Carnegie Trust for Universities of Scotland, and the Adam Smith Research Foundation, University of Glasgow. The authors also thank the National Natural Science Foundation of China (Project No. 41230632), Fundamental Research Funds for the Central Universities (12JNYH002), and New Century Excellent Talents in University (NCET-110856) for generously funding this research.

ABSTRACT

Despite extensive public infrastructure spending, little is known about the benefits of access to “green amenities” like parks within cities. This paper uses spatial econometric methods to estimate the value of proximity to parks using land markets in a Chinese megacity. Our research design captures mechanisms of spatial interaction effects and highlights the importance of avoiding the biases inherent in the traditional valuation approach. Our results suggest that land adjacent to parks is significantly valued by land developers and that these valuations are not distributed evenly over space. Our evidence provides support for considering locations in explaining the amenity value differentials that are grounded in the social, economic, and local contextual forces at stake.

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