# RECORD 22e62fc82c4ed1c605cd41b5c6124856f4afd7c6
# TITLE: The Amenity Value of English Nature: A Hedonic Price Approach
# YEAR: 2014.0  VENUE: nan  DOI: 10.1007/s10640-013-9664-9
# AUTHORS: S. Gibbons; S. Mourato; G. Resende
# PAGES: 35  CANDIDATE TABLE PAGES (1-based): [29, 30, 31]
# ABSTRACT: Using a hedonic property price approach, we estimate the amenity value associated with proximity to habitats, designated areas, domestic gardens and other natural amenities in England. There is a long tradition of studies looking at the effect of environmental amenities and disamenities on property prices. But, to our knowledge, this is the first nationwide study of the value of proximity to a large number of natural amenities in England. We analysed 1 million housing transactions over 1996–2008 and considered a large number of environmental characteristics. Results reveal that the effects of many of these environmental variables are highly statistically significant, and are quite large in economic magnitude. Gardens, green space and areas of water within the census ward all attract a considerable positive price premium. There is also a strong positive effect from freshwater and flood plain locations, broadleaved woodland, coniferous woodland and enclosed farmland. Increasing distance to natural amenities such as rivers, National Parks and National Trust sites is unambiguously associated with a fall in house prices. Our preferred regression specifications control for unobserved labour market and other geographical factors using Travel to Work Area fixed effects, and the estimates are fairly insensitive to changes in specification and sample. This provides some reassurance that the hedonic price results provide a useful representation of the values attached to proximity to environmental amenities in England. Overall, we conclude that the housing market in England reveals substantial amenity value attached to a number of habitats, designations, private gardens and local environmental amenities.


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SERC DISCUSSION PAPER 74
The Amenity Value of English Nature:
A Hedonic Price Approach
Steve Gibbons (SERC, Department of Geography & Environment, London
School of Economics)
Susana Mourato (Department of Geography & Environment, London
School of Economics)
Guilherme Resende (Department of Geography & Environment, London
School of Economics, IPEA, Brazil)
March 2011


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26
Table 2: Property prices and environmental amenities (OLS regression estimates) 
 
Model 1: 
OLS 
 Model 2:
+ housing 
characteristics 
Model 3:
+ TTWA 
dummies 
Model 4:
Metropolitan 
areas 
TTWAs
Model 5: 
All Great 
Britain
Ward share of: 
 
Domestic gardens 
***2.03
(0.32) 
***1.35
(0.23) 
***1.01
(0.119) 
***1.20
(0.22)
-
Green space 
***1.50
(0.16) 
***1.00
(0.13) 
***1.04
(0.08) 
***1.20
(0.13)
-
Water 
***1.24
(0.19) 
***0.75
(0.14) 
***0.97
(0.08) 
***1.09
(0.15)
-
Domestic buildings 
**2.31
(0.92) 
***1.21
(0.45) 
***2.16
(0.30) 
***2.30
(0.16)
-
Other buildings 
***3.60
(0.44) 
***2.89
(0.35) 
***2.67
(0.23) 
***3.02
(0.29)
-
Green Belt 
-0.01
(0.03) 
-0.03
(0.04) 
0.02
(0.02) 
**0.03
(0.02)
-
National Park 
**-0.14
(-0.06) 
-0.02
(0.05) 
0.05
(0.04) 
0.01
(0.04)
-
Ward area (km2) 
***0.000002
(0.0000005) 
*0.0000007
(0.0000004) 
***0.0000009
(0.0000002) 
**0.000001
(0.0000005)
-
Distance (100kms) to: 
 
Coastline 
-0.15
(0.11) 
**-0.15
(0.08) 
-0.14
(0.13) 
***-0.53
(0.24)
*-0.20
(0.12)
Rivers 
1.35
(0.97) 
0.92
(1.01) 
*-0.91
(0.69) 
***-2.16
(0.48)
*-1.05
(0.62)
National Parks 
**0.22
(0.09) 
**0.17
(0.06) 
***-0.24
(0.09) 
***-0.40
(0.14)
-
Nature Reserves 
***-0.54
(0.20) 
***-0.42
(0.19) 
-0.07
(0.23) 
-0.28
(0.51)
-
National Trust 
properties 
***-1.85
(0.33) 
***-1.67
(0.25) 
***-0.70
(0.17) 
-0.38
(0.33)
-
Land  in 1km x 1km square: 
 
Marine and coastal 
margins 
-0.36
(0.23) 
**-0.26
(0.12) 
0.04
(0.04) 
-0.15
(0.12)
0.04
(0.04)
Freshwater, 
wetlands, 
floodplains 
***1.05
(0.27) 
***1.09
(0.21) 
***0.40
(0.15) 
***0.47
(0.02)
**0.32
(0.14)
Mountains, moors 
and heathland 
0.09
(0.22) 
0.19
(0.21) 
0.09
(0.10) 
0.08
(0.21)
-0.07
(0.08)
Semi-natural 
grassland 
***-0.18
(0.06) 
***-0.25
(0.06) 
-0.01
(0.02) 
-0.02
(0.04)
-0.02
(0.03)
Enclosed farmland 
0.16
(0.07) 
0.08
(0.03) 
***0.06
(0.01) 
***0.07
(0.02)
***0.09
(0.02)
Coniferous 
woodland 
**0.53
(0.22) 
*0.33
(0.15) 
*0.12
(0.06) 
0.09
(0.12)
**0.15
(0.07)
Broadleaved 
woodland 
***0.82
(0.08) 
***0.60
(0.07) 
***0.19
(0.04) 
***0.17
(0.08)
***0.25
(0.04)
Inland bare ground 
**-0.87
(0.31) 
**-0.73
(0.27) 
***-0.38
(0.10) 
***-0.42
(0.12)
***-0.45
(0.12)


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27
 
Model 1: 
OLS 
 Model 2:
+ housing 
characteristics 
Model 3:
+ TTWA 
dummies 
Model 4:
Metropolitan 
areas 
TTWAs
Model 5: 
All Great 
Britain
Accessibility/other: 
 
Distance to station 
-
***-1.15
(0.25) 
-0.14
(0.21) 
-0.15
(0.58)
0.06
(0.20)
Distance to 
motorways 
-
***-0.27
(0.07) 
-0.17
(0.11) 
-0.38
(0.41)
-0.06
(0.10)
Distance to primary 
road 
-
0.69
(0.38) 
-0.17
(0.17) 
0.06
(0.46)
0.10
(0.18)
Distance to A-road 
-
***-0.64
(0.24) 
0.16
(0.20) 
0.33
(0.58)
**0.51
(0.26)
Population 
(1000s/km2) 
-
***0.03
(0.008) 
0.002 
(0.005) 
0.004
(0.003)
0.002
(0.007)
Age7-11 Value 
Added (standard 
deviation) 
-
***0.035
(0.006) 
***0.022
(0.004) 
***0.032
(0.004)
-
Distance to School 
-
-0.17
(0.27) 
***0.85
(0.33) 
***4.49
(1.34)
-
Distance x value-
added 
-
*-0.27
(0.15) 
**-0.20
(0.08) 
-1.10
(0.26)
-
Distance to TTWA 
centre 
-
***0.98
(0.14) 
**-0.61
(0.27) 
**-1.09
(0.49)
**-0.60
(0.26)
Distance to nearest 
church 
-
-
-
***-4.21
(0.95)
-
House 
characteristics 
No 
Yes 
Yes 
Yes
Yes
TTWA fixed effects 
No 
No 
Yes 
Yes
Yes
R-squared 
0.516 
0.766 
0.865 
0.854
0.854
Sample size 
1,013,125 
1,013,125 
1,013,125 
448,936
1,135,234
Notes: (1) Table reports coefficients and standard errors from OLS regressions of ln house sales 
prices on environmental amenities. Standard errors are clustered at Travel To Work Area level 
(2007 definition). 
(2) Ward share coefficients show approximate % change in price for 1 percentage point increase 
in share of Census Ward in land use. Omitted category is other land uses not listed. 
(3) 1km2 landcover share coefficients show approximate % change in price for 1 percentage point 
increase in share of the 1km square containing the property (≈ 10000 m2 within nearest 1 million 
m2). Omitted category is urban. 
(4) Distance coefficients show approximate % change in price for 1km increase in distance. 
(5) Sample is Nationwide housing transactions in England, 1996-2008, except for Model 5, where 
the sample refers to Great Britain. 
(6) Unreported housing characteristics in Models 2 to 5 are property type, floor area, floor area-
squared, central heating type (none or full, part, by type of fuel),  garage (space, single, double, 
none), tenure, new build, age, age-squared, number of bathrooms (dummies), number of 
bedrooms (dummies), year and month dummies. 
(7) Metropolitan areas in Model 4 includes North West, West Midlands and London and is 
restricted to sales within 2km of nearest church. 
(8) ***p<0.01, **p<0.05, *p<0.10. 
 


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28
Table 3: Implicit prices by region (£ capitalised values) 
 
ALL 
ENGLAND 
LONDON, 
SOUTH 
EAST AND 
WEST 
MIDLANDS, 
EAST 
MIDLANDS 
AND EAST 
NORTH, 
NORTH 
WEST AND 
YORKSHIRE
Ward share of: 
Domestic gardens 
***1,970 
***1,769 
***1,955 
***2,487
Green space 
***2,020 
***2,068 
***1,200 
***1,773
Water 
***1,886 
***1,794 
***1,179 
***1,911
Domestic buildings 
***4,242 
***4,796 
610
**2,292
Other buildings 
***5,244 
***5,955 
***2,858 
4,593
Green Belt 
41
19
81
17
National Park 
94
*-184
***256
131
Ward area (+10 km2) 
***0.017 
***0.034 
**0.013 
***0.009
Distance to: 
Coastline 
-275
-56
-94
-348
Rivers 
*-1,751
-2,446 
***-2,711 
-884
National Parks 
***-461
**-348
-188
***-782
Nature Reserves 
-143
-1,322 
632
-402
National Trust properties 
***-1,347 
***-3,596 
-212
***-1,117
Land  in 1km square: 
Marine and coastal margins 
70
138
53
58
Freshwater, wetlands, floodplains 
***768
***1,332 
36
233
Mountains, moors and heathland 
166
-155
-258
***832
Semi-natural grassland 
-27
6
-32
**-191
Enclosed farmland 
***113
***123
32
**71
Coniferous woodland 
*227
***305
307
-131
Broadleaved woodland 
***377
***495
***412
*240
Inland bare ground 
***-738
***-1,055 
-111
**-479
Accessibility/other: 
Distance to station 
-260
123
*-687
-294
Distance to motorways 
-339
-459
-416
-30
Distance to primary road 
-324
-344
227
99.4
Distance to A-road 
318
997
-230
-508
Population (+100/km2) 
***0.30 
*0.12 
***0.33 
***0.20
Age7-11 Value Added (+ 1 
standard deviation) 
***4,300 
***5,600 
***3,800 
***2,700
Distance to School 
***1,661 
***3,092 
90
**1,534
Distance x value-added 
**-393
-558
***-379
73
Distance to TTWA centre 
**-1,173 
*-1,741
*-518
**-851
Sample size 
1,013,125 
476,846 
341,527 
194,752
Mean house price 2008 
£194,040 
£243,850 
£181,058 
£158,095


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29
(1)Table reports marginal willingness to pay, evaluated at regional mean prices. The All England 
estimates correspond to the coefficients in Model 3, Table 3. 
(2) Distance variables evaluated for 1km change. 
(3) Land shares evaluated for 1 percentage point change. 
(4) School value added evaluated for 1 standard deviation change. 
(5) ***p<0.01, **p<0.05, *p<0.10.