|Annotated Bibliography |
|STUDY (FULL REFERENCE)
Tyrvainen, L. and Miettinen, A. (2000) Property prices and urban forest amenities, Journal of Environmental Economics and
Management, Vol. 39, pp. 205-223.
Hedonic Price Method
FOCUS AND LOCATION
Affect on terrace house prices in Salo, Finland of proximity to and views of forested areas.
SITE & SOCIOECONOMIC CHARACTERISTICS
The district of Salo is located 110kms to the northwest of Helsinki. The district contains two municipalities, Salo and Halikko. In 1996,
Salo had a population of 23,000 while Halikko had a population of 9,000. In most housing areas detached houses or terraced houses
predominated. The town of Salo had approximately 1,100 ha of forest, the majority of which (74%) was found in the urban fringe.
Housing expanded into these hill areas only in recent decades. The urban forests in the district of Salo were quite fragmented and
different in respect of both tree species and age-class distribution. Most areas were pine-dominated, but also species such as oak,
linden, maple and hazelnut are frequent.
Reduction in terrace house price from a 1km increase in distance from a forest park: 5.9%
Increase in terrace house price associated with a view onto forest: 4.9%
There were four different variables included initially to measure urban forest amenities. Due to issues of multicollinearity this was
reduced to two variables: the presence or absence of a forest view and distance to the nearest forested area. Although these two
variables are also related themselves the following justification was offered for treating them as distinct variables in the price equation.
The average distance to a forested area from a dwelling with a view was only 30 metres, whereas for dwellings without a view, the
average distance to the nearest forested area was 365 metres.
A model was also estimated where distance to a forested park was classified using dummy variables representing 0.005-0.099km,
0.100-0.299km, 0.300-0.599km and 0.600-0.999km. In this model, distance from the forest was statistically significant for only values
less than 600 metres. The paper also presents a method, with a hypothetical example, to use the results of the hedonic analysis in
estimating the aggregate value of a forest area.