Template-Type: ReDIF-Paper 1.0
Author-Name: Toke Emil Panduro
Author-Name-First: Toke Emil
Author-Name-Last: Panduro
Author-Email: tepp@ifro.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Name: Cathrine Ulla Jensen
Author-Name-First: Cathrine Ulla
Author-Name-Last: Jensen
Author-Email: cuj@ifro.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Name: Thomas Hedemark Lundhede
Author-Name-First: Thomas Hedemark
Author-Name-Last: Lundhede
Author-Email: thlu@ifro.ku.dk
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Workplace-Name: Center for Macroecology, Evolution and Climate, University of Copenhagen
Author-Name: Kathrine von Graevenitz
Author-Name-First: Kathrine
Author-Name-Last: von Graevenitz
Author-Email: vongraevenitz@zew.de 
Author-Workplace-Name: Department of Environmental and Resource Economics, Centre for European Economic Research (ZEW)
Author-Name: Bo Jellesmark Thorsen
Author-Name-First: Bo Jellesmark
Author-Name-Last: Thorsen
Author-Workplace-Name: Department of Food and Resource Economics, University of Copenhagen
Author-Workplace-Name: Center for Macroecology, Evolution and Climate, University of Copenhagen
Title: Estimating demand schedules in hedonic analysis: The case of urban parks
Abstract: The hedonic pricing method has been used extensively to obtain implicit prices for availability of urban green space, but few hedonic studies have obtained households’ preference parameters. We estimate willingness to pay functions for park availability in Copenhagen using an approach that places identifying restrictions on the utility function. We do this for two different measures of park availability. We apply our results to a policy scenario and show how estimates of aggregate welfare changes are highly sensitive to the measure of park availability applied. Thus, the approach in this study applies an alternative path for estimation of demand schedules for public goods using hedonic data. The findings also stress the importance of paying attention to how public goods are defined when undertaking welfare economic policy analyses.
Length: 30 pages
Creation-Date: 2016-09
File-URL: http://okonomi.foi.dk/workingpapers/WPpdf/WP2016/IFRO_WP_2016_06.pdf
File-Format: Application/pdf
Number: 2016/06
Classification-JEL: R21, Q51
Keywords: hedonic house price model, green space, preference heterogeneity, identification
Handle: RePEc:foi:wpaper:2016_06