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Urban green spaces offer a multitude of ecological, recreational, and economic benefits to cities and their residents. However, quantifying the economic value of these amenities is crucial for informing sustainable urban planning and policymaking. This study investigates the economic worth of the Yamuna Biodiversity Park, a prominent urban green space in Delhi, India, using the Hedonic Price Method (HPM). The primary objective is to assess the influence of proximity to the park on residential property values in the surrounding neighbourhoods.
The empirical analysis employs a comprehensive hedonic pricing model that examines the impact of various structural, neighbourhood, and environmental attributes, including the distance to the park, on property prices. Property transaction data and spatial information on park proximity are utilized to estimate the implicit value associated with living near the Yamuna Biodiversity Park.
The findings from the Box-Cox transformation model reveal that environmental amenities, such as proximity to the park and air quality, significantly influence property values. Properties located closer to the park command higher prices, suggesting that homebuyers place a premium on this proximity. Furthermore, the analysis of the marginal willingness-to-pay function indicates that household income and proximity to the park are significant determinants of the marginal value attributed to living near the park.
The inverse demand function derived from the analysis quantifies the monetary value that households are willing to pay for the environmental amenity provided by the park's proximity. Specifically, the results suggest that a typical household is willing to pay approximately Rs. 274 for a reduction of 1 Km in the distance from their residence to the Yamuna Biodiversity Park.
These findings underscore the substantial economic value associated with the Yamuna Biodiversity Park and its role in enhancing the quality of life and economic well-being of the surrounding areas. The study contributes to the growing body of literature on the economic valuation of urban environmental amenities, providing valuable insights for policymakers, urban planners, and stakeholders involved in urban development and environmental conservation efforts.
Key Words: Urban green space, Economic valuation, Hedonic pricing, Environmental amenities, Willingness to pay.
