1# RECORD 22e62fc82c4ed1c605cd41b5c6124856f4afd7c62# TITLE: The Amenity Value of English Nature: A Hedonic Price Approach3# YEAR: 2014.0 VENUE: nan DOI: 10.1007/s10640-013-9664-94# AUTHORS: S. Gibbons; S. Mourato; G. Resende5# PAGES: 35 CANDIDATE TABLE PAGES (1-based): [29, 30, 31]6# 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.789===== PAGE 1 (score 0, numeric-paren 0, table-words 0, var-words 0) =====1011SERC DISCUSSION PAPER 7412The Amenity Value of English Nature:13A Hedonic Price Approach14Steve Gibbons (SERC, Department of Geography & Environment, London15School of Economics)16Susana Mourato (Department of Geography & Environment, London17School of Economics)18Guilherme Resende (Department of Geography & Environment, London19School of Economics, IPEA, Brazil)20March 2011212223===== PAGE 29 (score 108, numeric-paren 94, table-words 1, var-words 12) =====2425 262627Table 2: Property prices and environmental amenities (OLS regression estimates) 28 29Model 1: 30OLS 31 Model 2:32+ housing 33characteristics 34Model 3:35+ TTWA 36dummies 37Model 4:38Metropolitan 39areas 40TTWAs41Model 5: 42All Great 43Britain44Ward share of: 45 46Domestic gardens 47***2.0348(0.32) 49***1.3550(0.23) 51***1.0152(0.119) 53***1.2054(0.22)55-56Green space 57***1.5058(0.16) 59***1.0060(0.13) 61***1.0462(0.08) 63***1.2064(0.13)65-66Water 67***1.2468(0.19) 69***0.7570(0.14) 71***0.9772(0.08) 73***1.0974(0.15)75-76Domestic buildings 77**2.3178(0.92) 79***1.2180(0.45) 81***2.1682(0.30) 83***2.3084(0.16)85-86Other buildings 87***3.6088(0.44) 89***2.8990(0.35) 91***2.6792(0.23) 93***3.0294(0.29)95-96Green Belt 97-0.0198(0.03) 99-0.03100(0.04) 1010.02102(0.02) 103**0.03104(0.02)105-106National Park 107**-0.14108(-0.06) 109-0.02110(0.05) 1110.05112(0.04) 1130.01114(0.04)115-116Ward area (km2) 117***0.000002118(0.0000005) 119*0.0000007120(0.0000004) 121***0.0000009122(0.0000002) 123**0.000001124(0.0000005)125-126Distance (100kms) to: 127 128Coastline 129-0.15130(0.11) 131**-0.15132(0.08) 133-0.14134(0.13) 135***-0.53136(0.24)137*-0.20138(0.12)139Rivers 1401.35141(0.97) 1420.92143(1.01) 144*-0.91145(0.69) 146***-2.16147(0.48)148*-1.05149(0.62)150National Parks 151**0.22152(0.09) 153**0.17154(0.06) 155***-0.24156(0.09) 157***-0.40158(0.14)159-160Nature Reserves 161***-0.54162(0.20) 163***-0.42164(0.19) 165-0.07166(0.23) 167-0.28168(0.51)169-170National Trust 171properties 172***-1.85173(0.33) 174***-1.67175(0.25) 176***-0.70177(0.17) 178-0.38179(0.33)180-181Land in 1km x 1km square: 182 183Marine and coastal 184margins 185-0.36186(0.23) 187**-0.26188(0.12) 1890.04190(0.04) 191-0.15192(0.12)1930.04194(0.04)195Freshwater, 196wetlands, 197floodplains 198***1.05199(0.27) 200***1.09201(0.21) 202***0.40203(0.15) 204***0.47205(0.02)206**0.32207(0.14)208Mountains, moors 209and heathland 2100.09211(0.22) 2120.19213(0.21) 2140.09215(0.10) 2160.08217(0.21)218-0.07219(0.08)220Semi-natural 221grassland 222***-0.18223(0.06) 224***-0.25225(0.06) 226-0.01227(0.02) 228-0.02229(0.04)230-0.02231(0.03)232Enclosed farmland 2330.16234(0.07) 2350.08236(0.03) 237***0.06238(0.01) 239***0.07240(0.02)241***0.09242(0.02)243Coniferous 244woodland 245**0.53246(0.22) 247*0.33248(0.15) 249*0.12250(0.06) 2510.09252(0.12)253**0.15254(0.07)255Broadleaved 256woodland 257***0.82258(0.08) 259***0.60260(0.07) 261***0.19262(0.04) 263***0.17264(0.08)265***0.25266(0.04)267Inland bare ground 268**-0.87269(0.31) 270**-0.73271(0.27) 272***-0.38273(0.10) 274***-0.42275(0.12)276***-0.45277(0.12)278279280===== PAGE 30 (score 55, numeric-paren 34, table-words 2, var-words 17) =====281282 28327284 285Model 1: 286OLS 287 Model 2:288+ housing 289characteristics 290Model 3:291+ TTWA 292dummies 293Model 4:294Metropolitan 295areas 296TTWAs297Model 5: 298All Great 299Britain300Accessibility/other: 301 302Distance to station 303-304***-1.15305(0.25) 306-0.14307(0.21) 308-0.15309(0.58)3100.06311(0.20)312Distance to 313motorways 314-315***-0.27316(0.07) 317-0.17318(0.11) 319-0.38320(0.41)321-0.06322(0.10)323Distance to primary 324road 325-3260.69327(0.38) 328-0.17329(0.17) 3300.06331(0.46)3320.10333(0.18)334Distance to A-road 335-336***-0.64337(0.24) 3380.16339(0.20) 3400.33341(0.58)342**0.51343(0.26)344Population 345(1000s/km2) 346-347***0.03348(0.008) 3490.002 350(0.005) 3510.004352(0.003)3530.002354(0.007)355Age7-11 Value 356Added (standard 357deviation) 358-359***0.035360(0.006) 361***0.022362(0.004) 363***0.032364(0.004)365-366Distance to School 367-368-0.17369(0.27) 370***0.85371(0.33) 372***4.49373(1.34)374-375Distance x value-376added 377-378*-0.27379(0.15) 380**-0.20381(0.08) 382-1.10383(0.26)384-385Distance to TTWA 386centre 387-388***0.98389(0.14) 390**-0.61391(0.27) 392**-1.09393(0.49)394**-0.60395(0.26)396Distance to nearest 397church 398-399-400-401***-4.21402(0.95)403-404House 405characteristics 406No 407Yes 408Yes 409Yes410Yes411TTWA fixed effects 412No 413No 414Yes 415Yes416Yes417R-squared 4180.516 4190.766 4200.865 4210.8544220.854423Sample size 4241,013,125 4251,013,125 4261,013,125 427448,9364281,135,234429Notes: (1) Table reports coefficients and standard errors from OLS regressions of ln house sales 430prices on environmental amenities. Standard errors are clustered at Travel To Work Area level 431(2007 definition). 432(2) Ward share coefficients show approximate % change in price for 1 percentage point increase 433in share of Census Ward in land use. Omitted category is other land uses not listed. 434(3) 1km2 landcover share coefficients show approximate % change in price for 1 percentage point 435increase in share of the 1km square containing the property (≈ 10000 m2 within nearest 1 million 436m2). Omitted category is urban. 437(4) Distance coefficients show approximate % change in price for 1km increase in distance. 438(5) Sample is Nationwide housing transactions in England, 1996-2008, except for Model 5, where 439the sample refers to Great Britain. 440(6) Unreported housing characteristics in Models 2 to 5 are property type, floor area, floor area-441squared, central heating type (none or full, part, by type of fuel), garage (space, single, double, 442none), tenure, new build, age, age-squared, number of bathrooms (dummies), number of 443bedrooms (dummies), year and month dummies. 444(7) Metropolitan areas in Model 4 includes North West, West Midlands and London and is 445restricted to sales within 2km of nearest church. 446(8) ***p<0.01, **p<0.05, *p<0.10. 447 448449450===== PAGE 31 (score 22, numeric-paren 6, table-words 1, var-words 14) =====451452 45328454Table 3: Implicit prices by region (£ capitalised values) 455 456ALL 457ENGLAND 458LONDON, 459SOUTH 460EAST AND 461WEST 462MIDLANDS, 463EAST 464MIDLANDS 465AND EAST 466NORTH, 467NORTH 468WEST AND 469YORKSHIRE470Ward share of: 471Domestic gardens 472***1,970 473***1,769 474***1,955 475***2,487476Green space 477***2,020 478***2,068 479***1,200 480***1,773481Water 482***1,886 483***1,794 484***1,179 485***1,911486Domestic buildings 487***4,242 488***4,796 489610490**2,292491Other buildings 492***5,244 493***5,955 494***2,858 4954,593496Green Belt 49741498194998150017501National Park 50294503*-184504***256505131506Ward area (+10 km2) 507***0.017 508***0.034 509**0.013 510***0.009511Distance to: 512Coastline 513-275514-56515-94516-348517Rivers 518*-1,751519-2,446 520***-2,711 521-884522National Parks 523***-461524**-348525-188526***-782527Nature Reserves 528-143529-1,322 530632531-402532National Trust properties 533***-1,347 534***-3,596 535-212536***-1,117537Land in 1km square: 538Marine and coastal margins 539705401385415354258543Freshwater, wetlands, floodplains 544***768545***1,332 54636547233548Mountains, moors and heathland 549166550-155551-258552***832553Semi-natural grassland 554-275556556-32557**-191558Enclosed farmland 559***113560***12356132562**71563Coniferous woodland 564*227565***305566307567-131568Broadleaved woodland 569***377570***495571***412572*240573Inland bare ground 574***-738575***-1,055 576-111577**-479578Accessibility/other: 579Distance to station 580-260581123582*-687583-294584Distance to motorways 585-339586-459587-416588-30589Distance to primary road 590-324591-34459222759399.4594Distance to A-road 595318596997597-230598-508599Population (+100/km2) 600***0.30 601*0.12 602***0.33 603***0.20604Age7-11 Value Added (+ 1 605standard deviation) 606***4,300 607***5,600 608***3,800 609***2,700610Distance to School 611***1,661 612***3,092 61390614**1,534615Distance x value-added 616**-393617-558618***-37961973620Distance to TTWA centre 621**-1,173 622*-1,741623*-518624**-851625Sample size 6261,013,125 627476,846 628341,527 629194,752630Mean house price 2008 631£194,040 632£243,850 633£181,058 634£158,095635636637===== PAGE 32 (score 4, numeric-paren 0, table-words 2, var-words 0) =====638639 64029641(1)Table reports marginal willingness to pay, evaluated at regional mean prices. The All England 642estimates correspond to the coefficients in Model 3, Table 3. 643(2) Distance variables evaluated for 1km change. 644(3) Land shares evaluated for 1 percentage point change. 645(4) School value added evaluated for 1 standard deviation change. 646(5) ***p<0.01, **p<0.05, *p<0.10. 647