Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices

Quantitative information on residents' valuations attached to forests is needed for assessing land use, city planning, and the development of policies for forest preservation. This paper aims to value implicitly non-market forest amenities by estimating real estate housing prices and specific amount...

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Main Author: Obregón Santander, Pedro Manuel
Format: H2
Language:Inglés
Published: SLU/Dept. of Economics 2022
Subjects:
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author Obregón Santander, Pedro Manuel
author_browse Obregón Santander, Pedro Manuel
author_facet Obregón Santander, Pedro Manuel
author_sort Obregón Santander, Pedro Manuel
collection Epsilon Archive for Student Projects
description Quantitative information on residents' valuations attached to forests is needed for assessing land use, city planning, and the development of policies for forest preservation. This paper aims to value implicitly non-market forest amenities by estimating real estate housing prices and specific amounts of environmental amenities associated with recreational houses, specifically forest types. The empirical study is based on data from the sales of recreational houses in the county of Hässleholm in Sweden from 2018 to 2021. Two different models were used in this research, focusing on both global and local estimates. Proximity to pine forests, arable land, and bodies of water displayed significant effects on prices for recreational houses. The results suggest that individuals value natural amenities differently. Pine trees are seen as a disamenity that brings down the price of houses while proximity to both water and arable land affects prices positively. The model focusing on global estimates explains more efficiently the changes in prices in the housing market. It is recommended to consider more information about the real estate market structure and non-marker amenities to fully exploit the explanatory potential of local estimates.
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id RepoSLU18103
institution Swedish University of Agricultural Sciences
language Inglés
publishDate 2022
publishDateSort 2022
publisher SLU/Dept. of Economics
publisherStr SLU/Dept. of Economics
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spelling RepoSLU181032022-08-11T01:04:24Z Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices Obregón Santander, Pedro Manuel amenity hedonic pricing method (HPM) forests city planning dwelling prices revealed preferences Quantitative information on residents' valuations attached to forests is needed for assessing land use, city planning, and the development of policies for forest preservation. This paper aims to value implicitly non-market forest amenities by estimating real estate housing prices and specific amounts of environmental amenities associated with recreational houses, specifically forest types. The empirical study is based on data from the sales of recreational houses in the county of Hässleholm in Sweden from 2018 to 2021. Two different models were used in this research, focusing on both global and local estimates. Proximity to pine forests, arable land, and bodies of water displayed significant effects on prices for recreational houses. The results suggest that individuals value natural amenities differently. Pine trees are seen as a disamenity that brings down the price of houses while proximity to both water and arable land affects prices positively. The model focusing on global estimates explains more efficiently the changes in prices in the housing market. It is recommended to consider more information about the real estate market structure and non-marker amenities to fully exploit the explanatory potential of local estimates. SLU/Dept. of Economics 2022 H2 eng https://stud.epsilon.slu.se/18103/
spellingShingle amenity
hedonic pricing method (HPM)
forests
city planning
dwelling prices
revealed preferences
Obregón Santander, Pedro Manuel
Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices
title Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices
title_full Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices
title_fullStr Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices
title_full_unstemmed Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices
title_short Valuing Forest Amenities : assessing the effect of non-market amenities on real estate prices
title_sort valuing forest amenities : assessing the effect of non-market amenities on real estate prices
topic amenity
hedonic pricing method (HPM)
forests
city planning
dwelling prices
revealed preferences