Valuation of urban green open space using the Hedonic price model
BACKGROUND AND OBJECTIVES: Urban green infrastructure, specifically green open spaces, is becoming increasingly significant in rapidly urbanizing areas. These spaces offer environmental, social, and economic advantages to urban ecosystems, thereby increasing community health and well-being. However,...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
GJESM Publisher
2024-01-01
|
| Series: | Global Journal of Environmental Science and Management |
| Subjects: | |
| Online Access: | https://www.gjesm.net/article_708260_f0c1233186d73c3dc23ac154eab18ba4.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832554659549544448 |
|---|---|
| author | R. Setiowati R.H. Koestoer R.D. Andajani |
| author_facet | R. Setiowati R.H. Koestoer R.D. Andajani |
| author_sort | R. Setiowati |
| collection | DOAJ |
| description | BACKGROUND AND OBJECTIVES: Urban green infrastructure, specifically green open spaces, is becoming increasingly significant in rapidly urbanizing areas. These spaces offer environmental, social, and economic advantages to urban ecosystems, thereby increasing community health and well-being. However, their economic value is often overlooked in urban planning. This study aims to conduct an economic valuation of green spaces by introducing the hedonic price model to equip decision-makers with a thorough and informed perspective.METHODS: A questionnaire created through Google Forms was distributed through a social media survey conducted from March to April 2021. The data collected from 1592 respondents in Jakarta were analyzed through a cluster analysis using the statistical package for social sciences software. The hedonic price model with ordinary least squares regression was adopted to create a valuation model for the green spaces in 42 districts and 239 sub-districts across the five administrative cities.FINDINGS: This study empirically shows that parks and urban forests increase land prices by 9.2, 17.1, and 19.2 percent, while cemeteries decrease them by 15 to 37.6 percent. Unlike most hedonic price model studies on the global north countries, which can be found in the literature, this work does not establish statistically significant relationships among urban forests, parks, cemeteries within a 0–500 meter radius, and land prices in Jakarta, but examines the economic value of green spaces, including their impact on land values and tax revenues. The land value increase is caused by the implementation of a beneficiary zoning levy within a designated impact zone of 0.5–2 kilometers. This study suggests policy implications, including the exploration of alternative financing mechanisms and the consideration of public preferences in urban development and financing policies.CONCLUSION: The applicability of the hedonic price model in Jakarta's mature and privatized land market is confirmed in this work, proving the importance of considering environmental factors and green spaces in land transactions and conversion, property development, conservation, and urban green space design. The results provide valuable information to policymakers, property developers, and land use planners, thereby preventing the undervaluation of green spaces and facilitating informed decisions on planning and public investment. Urban and built environmental management can significantly benefit from these findings, particularly when considering the aspects of green space size, social functions, and ecosystem services to enhance Jakarta's planning and management practices. |
| format | Article |
| id | doaj-art-baa7f4488ad44c60bfb88e0de77ecf14 |
| institution | Kabale University |
| issn | 2383-3572 2383-3866 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | GJESM Publisher |
| record_format | Article |
| series | Global Journal of Environmental Science and Management |
| spelling | doaj-art-baa7f4488ad44c60bfb88e0de77ecf142025-02-03T05:50:53ZengGJESM PublisherGlobal Journal of Environmental Science and Management2383-35722383-38662024-01-0110245147210.22034/gjesm.2024.02.03708260Valuation of urban green open space using the Hedonic price modelR. Setiowati0R.H. Koestoer1R.D. Andajani2School of Environmental Science, Universitas Indonesia, Jl. Salemba Raya Kampus UI Salemba No.4, Kenari, Senen, Central Jakarta City, Jakarta 10430, IndonesiaSchool of Environmental Science, Universitas Indonesia, Jl. Salemba Raya Kampus UI Salemba No.4, Kenari, Senen, Central Jakarta City, Jakarta 10430, IndonesiaDepartment of Systems Innovation, Faculty of Engineering, The University of Tokyo, Engineering Building No.3, 7-3-1 Hongo, Bunkyo-ku, Tokyo, JapanBACKGROUND AND OBJECTIVES: Urban green infrastructure, specifically green open spaces, is becoming increasingly significant in rapidly urbanizing areas. These spaces offer environmental, social, and economic advantages to urban ecosystems, thereby increasing community health and well-being. However, their economic value is often overlooked in urban planning. This study aims to conduct an economic valuation of green spaces by introducing the hedonic price model to equip decision-makers with a thorough and informed perspective.METHODS: A questionnaire created through Google Forms was distributed through a social media survey conducted from March to April 2021. The data collected from 1592 respondents in Jakarta were analyzed through a cluster analysis using the statistical package for social sciences software. The hedonic price model with ordinary least squares regression was adopted to create a valuation model for the green spaces in 42 districts and 239 sub-districts across the five administrative cities.FINDINGS: This study empirically shows that parks and urban forests increase land prices by 9.2, 17.1, and 19.2 percent, while cemeteries decrease them by 15 to 37.6 percent. Unlike most hedonic price model studies on the global north countries, which can be found in the literature, this work does not establish statistically significant relationships among urban forests, parks, cemeteries within a 0–500 meter radius, and land prices in Jakarta, but examines the economic value of green spaces, including their impact on land values and tax revenues. The land value increase is caused by the implementation of a beneficiary zoning levy within a designated impact zone of 0.5–2 kilometers. This study suggests policy implications, including the exploration of alternative financing mechanisms and the consideration of public preferences in urban development and financing policies.CONCLUSION: The applicability of the hedonic price model in Jakarta's mature and privatized land market is confirmed in this work, proving the importance of considering environmental factors and green spaces in land transactions and conversion, property development, conservation, and urban green space design. The results provide valuable information to policymakers, property developers, and land use planners, thereby preventing the undervaluation of green spaces and facilitating informed decisions on planning and public investment. Urban and built environmental management can significantly benefit from these findings, particularly when considering the aspects of green space size, social functions, and ecosystem services to enhance Jakarta's planning and management practices.https://www.gjesm.net/article_708260_f0c1233186d73c3dc23ac154eab18ba4.pdfeconomic valuationgreen open space (gos)hedonic price model (hpm)land valueurban sustainability |
| spellingShingle | R. Setiowati R.H. Koestoer R.D. Andajani Valuation of urban green open space using the Hedonic price model Global Journal of Environmental Science and Management economic valuation green open space (gos) hedonic price model (hpm) land value urban sustainability |
| title | Valuation of urban green open space using the Hedonic price model |
| title_full | Valuation of urban green open space using the Hedonic price model |
| title_fullStr | Valuation of urban green open space using the Hedonic price model |
| title_full_unstemmed | Valuation of urban green open space using the Hedonic price model |
| title_short | Valuation of urban green open space using the Hedonic price model |
| title_sort | valuation of urban green open space using the hedonic price model |
| topic | economic valuation green open space (gos) hedonic price model (hpm) land value urban sustainability |
| url | https://www.gjesm.net/article_708260_f0c1233186d73c3dc23ac154eab18ba4.pdf |
| work_keys_str_mv | AT rsetiowati valuationofurbangreenopenspaceusingthehedonicpricemodel AT rhkoestoer valuationofurbangreenopenspaceusingthehedonicpricemodel AT rdandajani valuationofurbangreenopenspaceusingthehedonicpricemodel |