Work

Valuing public and private urban tree canopy cover

Year: 2013

Type: article

Abstract: In this paper, we estimate the effect of tree canopy cover on sales price of urban residential properties inPerth,WesternAustralia. Using a data set of 5606 single family homes sold in 2009 and a spatial hedonic model with three spatial effects – spatial‐temporal lag on dependent variable, spatial error, and spatially lagged independent variables – we estimated the location‐specific effect of tree canopy cover. Tree canopy cover increases the property value when located on adjacent public space, but decreases the value when it is on own property and on the adjacent property within 20 m of property boundary. The results are suggestive that council urban tree planting programs provide significant private benefits to homeowners.

Source: Australian Journal of Agricultural and Resource Economics

DOI: 10.1111/1467-8489.12037

Authors: Ram Pandit, Maksym Polyakov, Rohan Sadler

Institution: The University of Western Australia

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Sustainable cities and communities

Open Access status: bronze

Funders: Centre of Excellence for Environmental Decisions, Australian Research Council, University of Western Australia, Australian Research Council