Elevating the value of urban location: A consumer preference-based approach to valuing local amenity provision

Herath, S

Elevating the value of urban location: A consumer preference-based approach to valuing local amenity provision

Herath, S

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Publisher:: MDPI AG
Publication Type:: Journal Article
Citation:: Land, 2021, 10, (11), pp. 1226-1226
Issue Date:: 2021-11-01

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Field	Value	Language
dc.contributor.author	Herath, S https://orcid.org/0000-0002-7958-3274
dc.date.accessioned	2021-12-30T01:04:21Z
dc.date.available	2021-12-30T01:04:21Z
dc.date.issued	2021-11-01
dc.identifier.citation	Land, 2021, 10, (11), pp. 1226-1226
dc.identifier.issn	2073-445X
dc.identifier.issn	2073-445X
dc.identifier.uri	http://hdl.handle.net/10453/152566
dc.description.abstract	Estimating the non-market monetary values of urban amenities has become commonplace in urban planning research, particularly following Rosen’s seminal article on hedonic theory in 1974. As a revealed preference method, the hedonic approach decouples the market price of a house into price components that are attributable to housing characteristics. Despite the potential contribution of this theory in a planning context, three main limitations exist in the conventional applications: (1) variable measurement issues, (2) model misspecification, and (3) the problematic common use of global regression. These flaws problematically skew our understanding of the urban structure and spatial distribution of amenities, leading to misinformed policy interventions and poor amenity planning decisions. In this article, we propose a coherent conceptual framework that addresses measurement, specification, and scale challenges to generate consistent economic estimates of local amenities. Finally, we argue that, by paying greater attention to the spatial equity of amenity values, governments can provide greater equality of opportunities in cities.
dc.language	en
dc.publisher	MDPI AG
dc.relation.ispartof	Land
dc.relation.isbasedon	10.3390/land10111226
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	0502 Environmental Science and Management
dc.title	Elevating the value of urban location: A consumer preference-based approach to valuing local amenity provision
dc.type	Journal Article
utslib.citation.volume	10
utslib.for	0502 Environmental Science and Management
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	open_access	*
dc.date.updated	2021-12-30T01:04:20Z
pubs.issue	11
pubs.publication-status	Published
pubs.volume	10
utslib.citation.issue	11

Abstract:

Estimating the non-market monetary values of urban amenities has become commonplace in urban planning research, particularly following Rosen’s seminal article on hedonic theory in 1974. As a revealed preference method, the hedonic approach decouples the market price of a house into price components that are attributable to housing characteristics. Despite the potential contribution of this theory in a planning context, three main limitations exist in the conventional applications: (1) variable measurement issues, (2) model misspecification, and (3) the problematic common use of global regression. These flaws problematically skew our understanding of the urban structure and spatial distribution of amenities, leading to misinformed policy interventions and poor amenity planning decisions. In this article, we propose a coherent conceptual framework that addresses measurement, specification, and scale challenges to generate consistent economic estimates of local amenities. Finally, we argue that, by paying greater attention to the spatial equity of amenity values, governments can provide greater equality of opportunities in cities.

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http://hdl.handle.net/10453/152566