Measuring the benefits of neighbourhood park amenities: Application and comparison of spatial hedonic approaches

Tadao Hoshino, Koichi Kuriyama

Research output: Contribution to journalArticle

27 Citations (Scopus)

Abstract

The hedonic price method was used to estimate the influence of parks on the rental prices of single-room dwellings in Setagaya Ward, Tokyo, Japan. A simple least squares method is not optimal when the data set contains spatial autocorrelation. To improve the accuracy of estimates, we employed spatial autoregression and kriging models, resulting in a higher validity of the spatial models compared to the least squares model. Kriging models were superior to others particularly in terms of prediction accuracy, indicating that these models should be employed if the objective is superior prediction rather than estimation. The results showed that the effect of parks on property values varied with the buffer distance and park size.

Original languageEnglish
Pages (from-to)429-444
Number of pages16
JournalEnvironmental and Resource Economics
Volume45
Issue number3
DOIs
Publication statusPublished - 2010 Mar

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Keywords

  • Hedonic approach
  • Kriging
  • Spatial autocorrelation
  • Spatial regression models
  • Urban parks

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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