Valuing Private and Public Greenspace Using Remotely Sensed Vegetation Indices

In a typical metropolitan area, greenspace varies substantially in its quality and extent. Remotely sensed vegetation index data is used to characterize the heterogeneity in private and public greenspace (riparian corridors) in metropolitan Tucson, Arizona. This data set enables the researcher to test if: (1) greenness is a significant determinant of house price variation in this desert city; and (2) whether there is an interaction between public and private greenspace. Private greenspace amenities can be endogenously improved by homeowners as a complement or substitute for the greenspace that is publicly provided, whereas public greenspace might be exogenous or endogenous depending on households ability to pressure the local government to protect or restore public greenspace. The results of a Hausman test indicate that endogeneity is a problem in the dataset and therefore an instrumental variable two stage least squares estimation is used. The results of this analysis indicate that homebuyers in the study area have preferences for both greener lots and greener riparian corridors and that private and public greenspace appear to be substitutes. Results are robust across multiple identification strategies designed to address potential endogeneity. The study results could have fundamental implications for the efficient use of limited water supplies in this semi-arid metropolitan area.Resource /Energy Economics and Policy,

Do Homebuyers Care about the 'Quality' of Natural Habitats?

We study if homebuyers in Tucson, Arizona care about the condition of natural habitats and if they have preferences between natural and manmade habitats. Using field work data we examine whether homebuyers willingness to pay is influenced by the biological condition of the neighboring riparian habitat and how homebuyers value alternative manmade green areas, specifically golf courses. We also explore the relationship between the field data and remote sensing vegetation indices. The results of a hedonic analysis of houses that sold within 0.2 miles of 51 stratified-random selected riparian survey sites in Tucson, Arizona reveals that homebuyers significantly value habitat quality and negatively value manmade park-like features. Homebuyers are willing to pay twenty percent more to live near a riparian corridor that is densely vegetated and contains more shrub and tree species, particularly species that are dependent on perennial water flow. These environmental premiums are significant, outweighing structural factors such as an additional garage or swimming pool. Likewise, proximity to a riparian habitat with low biological quality or to a golf course lowers property values.Land Economics/Use,

Valuing Private and Public Greenspace Using Remotely Sensed Vegetation Indices

In a typical metropolitan area, greenspace varies substantially in its quality and extent. Remotely sensed vegetation index data is used to characterize the heterogeneity in private and public greenspace (riparian corridors) in metropolitan Tucson, Arizona. This data set enables the researcher to test if: (1) greenness is a significant determinant of house price variation in this desert city; and (2) whether there is an interaction between public and private greenspace. Private greenspace amenities can be endogenously improved by homeowners as a complement or substitute for the greenspace that is publicly provided, whereas public greenspace might be exogenous or endogenous depending on households ability to pressure the local government to protect or restore public greenspace. The results of a Hausman test indicate that endogeneity is a problem in the dataset and therefore an instrumental variable two stage least squares estimation is used. The results of this analysis indicate that homebuyers in the study area have preferences for both greener lots and greener riparian corridors and that private and public greenspace appear to be substitutes. Results are robust across multiple identification strategies designed to address potential endogeneity. The study results could have fundamental implications for the efficient use of limited water supplies in this semi-arid metropolitan area

Do Homebuyers Care about the 'Quality' of Natural Habitats?

We study if homebuyers in Tucson, Arizona care about the condition of natural habitats and if they have preferences between natural and manmade habitats. Using field work data we examine whether homebuyers willingness to pay is influenced by the biological condition of the neighboring riparian habitat and how homebuyers value alternative manmade green areas, specifically golf courses. We also explore the relationship between the field data and remote sensing vegetation indices. The results of a hedonic analysis of houses that sold within 0.2 miles of 51 stratified-random selected riparian survey sites in Tucson, Arizona reveals that homebuyers significantly value habitat quality and negatively value manmade park-like features. Homebuyers are willing to pay twenty percent more to live near a riparian corridor that is densely vegetated and contains more shrub and tree species, particularly species that are dependent on perennial water flow. These environmental premiums are significant, outweighing structural factors such as an additional garage or swimming pool. Likewise, proximity to a riparian habitat with low biological quality or to a golf course lowers property values