Skip to Main Content
Proximity to natural amenities: A seemingly unrelated hedonic regression model with spatial durbin and spatial error processesAuthor(s): German M. Izon; Michael S. Hand; Daniel W. Mccollum; Jennifer A. Thacher; Robert P. Berrens
Source: Growth and Change. 47(4): 461-480.
Publication Series: Scientific Journal (JRNL)
Station: Rocky Mountain Research Station
Download Publication (189.0 KB)
DescriptionThe existing literature suggests that the presence of natural amenities, such as open spaces, can be highly valued and affect economic decisions about where people live and work. This article contributes to previous research by testing this hypothesis using a unique micro-level data set and by examining spatial variations in income levels and housing prices in the presence of natural amenities in a case study of Arizona. Proximity effects are estimated based on a geographic information system road network in which each variable represents the road mile distance from house i to its closest natural amenity within each category. Using a seemingly unrelated regression approach, spatial hedonic regressions of housing prices and income levels indicate that the total effect of various natural amenities calculated for the sample average income household and average home value, ranges from $2,382 (National Forests) to $1,560 (Wilderness areas). The presence of compensating differentials has policy relevance in considering the regional value of natural amenities. It also implies that valuation approaches such as the travel cost method may not reflect the full price of recreation site access, and may lead to underestimates of such values.
- You may send email to firstname.lastname@example.org to request a hard copy of this publication.
- (Please specify exactly which publication you are requesting and your mailing address.)
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
CitationIzon, German M.; Hand, Michael S.; Mccollum, Daniel W.; Thacher, Jennifer A.; Berrens, Robert P. 2016. Proximity to natural amenities: A seemingly unrelated hedonic regression model with spatial durbin and spatial error processes. Growth and Change. 47(4): 461-480.
Keywordsnatural amenities, open spaces, spatial variations, hedonic regressions, income levels, housing prices, travel cost
- Measuring the contribution of water and green space amenities to housing values: an application and comparison of spatially weighted hedonic models
- Protected Area Designation, Natural Amenities, and Rural Development of Forested Counties in the Continental United States
- Property values, parks, and crime: a hedonic analysis in Baltimore, MD
XML: View XML