Valuing the benefits of the urban forest: a spatial hedonic approach

• Published in: Journal of environmental planning and management 2008-11, Vol.51 (6), p.717-736
• Main Authors: Payton, Seth, Lindsey, Greg, Wilson, Jeff, Ottensmann, John R., Man, Joyce
• Format: Article
• Language: English
• Subjects: Construction; Copyrights; Documents; Econometrics; Environmental management; Forestry; Forests; Geographic information systems; hedonic model; Housing; Housing market; Housing prices; Impact analysis; Land use; Management; Mathematical models; Neighborhoods; Planners; Policies; Price models; Prices; Property; Proposals; Remote sensing; Satellite imagery; Satellite navigation systems; Spatial analysis; Spatial discrimination; spatial econometrics; Studies; Urban areas; urban forest benefits; urban form; Vegetation; Vegetation index
• ISSN: 0964-0568; 1360-0559
• DOI: 10.1080/09640560802423509

This paper measures the benefits of the urban forest by examining its effect on housing prices. A Geographic Information System is used to develop a measure of the urban forest, the Normalised Difference Vegetation Index, from satellite imagery and to construct other variables from a variety of sources. Spatial hedonic housing price models for the Indianapolis/Marion County area are estimated. The models indicate that greener vegetation around a property has a positive, significant effect on housing price, holding everything else constant. This effect is dominated by measures at the neighborhood level. These findings indicate that property owners value the urban forest, at least in part, by the premium they pay to live in neighborhoods with greener, denser vegetation. These findings also indicate that public action to maintain and enhance the urban forest may be warranted. Planners and urban foresters can use these findings to inform public and policy debates over urban forestry programs and proposals.