Abstract
Among the conventional models of valuing and economic pricing of the
environmental amenities, hedonic pricing method (HPM) is based on the
hypothesis that people usually determine their environmental consumption
preference levels through choosing their houses. In this paper we applied this
methodology along with an analysis of housing prices in different zones of Tabriz,
aiming at establishing a correlation between these factors and environmental
characteristics. The results can be generalized within the willingness to pay
principle of the consumers for buying a better house with regard to various factors
including the environmental variables. We adapted through a random systematic
sampling procedure a survey of residents in various areas of Tabriz that bear
different environmental conditions, being followed by statistical models. Findings
indicate that about 50% of the respondents seeking to buy houses were university
graduated. The priority of environmental quality promotion in the questionnaire
was the most imperative factor in selecting the house. The stepwise regression
analysis results designated positive significant correlation in 95% confidence level
between the independent variables of environmental quality, green space, and the
access to services, and dependent variable of house price. The null hypothesis
thereby was rejected and the amount of r2 was 68%. Final conclusion is that
people "do" include the quality of environment in their choices of buying house or
property and they allocate hidden prices to the environmental values and
amenities for their purchase. This study showed that HPM can be a reliable
method for appraisal and estimation of the effects of non-market environmental
goods and services, on house prices and other amenities.
Details
| Other ID | JA49PA83RP |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | December 1, 2013 |
| Published in Issue | Year 2013 Volume: 5 Issue: 2 |