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
Date Written: July 4, 2006
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: Suggested Citation