Recovery of the value of natural amenities: From oil fields to nature preserve. (30th November 2016)

• Record Type: Journal Article
• Authors: Noh, Youngre; Rogers, George
• Is Part Of: Land use policy. Volume 57(2016:Nov.)
• Page Start: 11
• Page End: 22
• Publication Date: 2016-11-30
• Subjects: Natural preserve -- Industrial site -- Hedonic pricing model -- Environmental valuation -- Oil wells -- Brown field; Land use -- Periodicals; Land use -- Government policy -- Periodicals; Sol, Utilisation du -- Périodiques; Sol, Utilisation du -- Politique gouvernementale -- Périodiques; Electronic journals; 333.7305
• DOI: 10.1016/j.landusepol.2016.05.010
• Languages: English
• ISSNs: 0264-8377

Abstract

Highlights: Hillside residency is a premium in spite of nearby oil wells. Nature preserve isvalued more when neighboring nature is perceived as a disamenity. It takes 10–12 years for industrially disturbed nature to recover its positive effect. Abstract: This study expands the existing literature on impact of environmental amenities and disamenities on the value of single family housing by temporally and spatially examining changes in the effect of nature and industry. The study area is bounded by a forest, a portion of which has been designated as a nature preserve and another portion which had various oil wells and was transformed into a nature preserve in 1994. Using market price data from sales transactions collected over a period of twenty-eight years, this study examines the changes in the impact of nature preserve and industrial site in the City of Whittier, CA before and after the conversion. A series of spatial hedonic models is examined in a longitudinal analyses to compare the effects of transformation and examine the recovery process over time across space. The results reveal that it took 10–12 years for the oil well site to recover its positive association to nearby single-family homes as a natural amenity. There was an initial increase of positive association between the site and the sales price of single-family houses upon the conversion. In contrast, positive association between the nature preserve and nearby properties had constantly decreased since the conversion. Ten years after the conversion, the positive impact of the former oil well sites surpassed the positive impact of the neighboring never-developed nature preserve.