Cookies?
Library Header Image
LSE Research Online LSE Library Services

The amenity value of English nature: a hedonic price approach

Gibbons, Stephen, Mourato, Susana and Resende, Guilherme Mendes (2014) The amenity value of English nature: a hedonic price approach. Environmental and Resource Economics, 57 (2). pp. 175-196. ISSN 0924-6460

[img]
Preview
PDF - Accepted Version
Download (967kB) | Preview

Identification Number: 10.1007/s10640-013-9664-9

Abstract

Using a hedonic property price approach,we estimate the amenity value associated with proximity to habitats, designated areas, domestic gardens and other natural amenities in England. There is a long tradition of studies looking at the effect of environmental amenities and disamenities on property prices. But, to our knowledge, this is the first nationwide study of the value of proximity to a large number of natural amenities in England. We analysed 1 million housing transactions over 1996–2008 and considered a large number of environmental characteristics. Results reveal that the effects of many of these environmental variables are highly statistically significant, and are quite large in economic magnitude. Gardens, green space and areas of water within the census ward all attract a considerable positive price premium. There is also a strong positive effect from freshwater and flood plain locations, broadleaved woodland, coniferous woodland and enclosed farmland. Increasing distance to natural amenities such as rivers, National Parks and National Trust sites is unambiguously associated with a fall in house prices. Our preferred regression specifications control for unobserved labour market and other geographical factors using Travel to Work Area fixed effects, and the estimates are fairly insensitive to changes in specification and sample. This provides some reassurance that the hedonic price results provide a useful representation of the values attached to proximity to environmental amenities in England. Overall, we conclude that the housing market in England reveals substantial amenity value attached to a number of habitats, designations, private gardens and local environmental amenities.

Item Type: Article
Official URL: http://www.springer.com/economics/environmental/jo...
Additional Information: © 2013 Springer Science+Business Media Dordrecht
Divisions: Geography & Environment
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HG Finance
Sets: Departments > Geography and Environment
Date Deposited: 10 Oct 2013 15:53
Last Modified: 20 Jan 2020 05:16
Funders: Economic and Social Research Council and UNEP-World Conservation Monitoring Centre
URI: http://eprints.lse.ac.uk/id/eprint/49375

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics