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Using the Hedonic Approach to Value Natural Land Uses in an Urban Area: An Application to Geneva and Zurich

Economie Publique/Public Economics, Vol. 2007/1, N0. 20, pp. 147-167, 2008

23 Pages Posted: 4 Jul 2011  

Caroline Schaerer

Geneva School of Business Administration

Andrea Baranzini

University of Applied Sciences Western Switzerland - Geneva School of Business Administration

José V. Ramirez

University of Applied Sciences Western Switzerland - Geneva School of Business Administration

Philippe Thalmann

Swiss Federal Institute of Technology Lausanne - Ecole Polytechnique Federale de Lausanne (EPFL)

Date Written: July 4, 2006

Abstract

We apply the hedonic model to the rental markets of the Geneva and Zurich urban areas, Switzerland, in order to assess the value of natural land uses and land use diversity. In order to construct variables to quantify land uses and patterns in the neighborhoods of the buildings, we make use of the Zurich and Geneva geographic information system (GIS). Then, by merging these GIS-calculated neighborhood variables with data on the dwellings' structure and noise exposure levels, we obtain a database of about 3200 observations for each urban area. We find that proximity to various environmental amenities as well as their size in the surrounding areas has a statistically significant impact on rents. In addition, homogeneity in land use commands higher rents. The estimated impacts are relatively similar in the two regions.

Keywords: hedonic model, rental market, housing market, landscape value, geographic information system (GIS)

JEL Classification: R14, R52, R31, D62

Suggested Citation

Schaerer, Caroline and Baranzini, Andrea and Ramirez, José V. and Thalmann, Philippe, Using the Hedonic Approach to Value Natural Land Uses in an Urban Area: An Application to Geneva and Zurich (July 4, 2006). Economie Publique/Public Economics, Vol. 2007/1, N0. 20, pp. 147-167, 2008. Available at SSRN: https://ssrn.com/abstract=1878456

Caroline Schaerer (Contact Author)

Geneva School of Business Administration ( email )

CH-1227 Geneva
Switzerland

Andrea Baranzini

University of Applied Sciences Western Switzerland - Geneva School of Business Administration ( email )

CH-1227 Geneva
Switzerland
+41-22-388 1718 (Phone)
+41-22-388 1701 (Fax)

HOME PAGE: http://campus.hesge.ch/baranzia/

José V. Ramirez

University of Applied Sciences Western Switzerland - Geneva School of Business Administration ( email )

CH-1227 Geneva
Switzerland

Philippe Thalmann

Swiss Federal Institute of Technology Lausanne - Ecole Polytechnique Federale de Lausanne (EPFL) ( email )

EPFL ENAC IA LEURE
Station 16
Lausanne, CH-1015
Switzerland
+41 21 693 7321 (Phone)

HOME PAGE: http://people.epfl.ch/philippe.thalmann

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