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Environmental and Resource Economics

, Volume 45, Issue 3, pp 429–444 | Cite as

Measuring the Benefits of Neighbourhood Park Amenities: Application and Comparison of Spatial Hedonic Approaches

  • Tadao Hoshino
  • Koichi Kuriyama
Article

Abstract

The hedonic price method was used to estimate the influence of parks on the rental prices of single-room dwellings in Setagaya Ward, Tokyo, Japan. A simple least squares method is not optimal when the data set contains spatial autocorrelation. To improve the accuracy of estimates, we employed spatial autoregression and kriging models, resulting in a higher validity of the spatial models compared to the least squares model. Kriging models were superior to others particularly in terms of prediction accuracy, indicating that these models should be employed if the objective is superior prediction rather than estimation. The results showed that the effect of parks on property values varied with the buffer distance and park size.

Keywords

Hedonic approach Kriging Spatial autocorrelation Spatial regression models Urban parks 

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Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  1. 1.Department of Social EngineeringTokyo Institute of TechnologyMeguro-ku, TokyoJapan
  2. 2.Division of Natural Resource Economics, Graduate School of AgricultureKyoto UniversitySakyo-ku, KyotoJapan

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