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http://dx.doi.org/10.15266/KEREA.2021.30.3.395

Economic Valuation of Green Open Spaces: The Effects of Homeownership and Residential Types  

Choi, Andy Sungnok (Choice Behavior Institute)
Cho, Seong-Hoon (Department of Agricultural and Resource Economics, University of Tennessee)
Publication Information
Environmental and Resource Economics Review / v.30, no.3, 2021 , pp. 395-433 More about this Journal
Abstract
This paper aims to examine the effects of homeownership and residential types on the economic values of urban green spaces. Green open spaces as public goods provide positive externalities that are comprised of pecuniary and technological externalities. Seoul, South Korea, is used as a case study using choice experiments, with split-sample online respondents of 1,000. The study results evidenced that the differentiation between the two types of externalities is imperative for equitable provisions and efficient management of various urban open spaces. There is a positively significant and substantial impact of homeownership for apartment dwellers, ceteris paribus, but not for house dwellers. For apartments, the efficiency loss can be reduced by increasing green spaces up to the critical point where the marginal cost is at equilibrium with tenants' marginal values. For non-apartment houses, it is not homeownership but the monthly household income that has a significant impact on the amenity value. In general, public benefits from green spaces are equivalent to 16% to 33% of the current residential prices on average for a view or access. Different residential types do not cause a significant impact on the access values. Residential profiles for green spaces were developed, together with tailor-made policy suggestions.
Keywords
Urban green spaces; Homeownership; Residential types; Willingness to pay; Choice experiments;
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