Abstract

Applying Huff Model in Land Conservation's impact measurement
Track: Real Estate
Authors: Dr. Jay Mittal

This paper examines whether environmental amenity such as Conservation Easements (CE) or a golf course influence surrounding home values using spatial hedonic models. The past home sales data was used to estimate this. Using GIS, explanatory variables were developed: proximity, view, and visual and geographical accessibility to protected lands.
The findings indicate that the perpetual nature of land protection and the passive form of activities found in this type of open spaces produce an amenity-effect that positively impacts home values. Homes located closer to such protected lands and with clear view, draw higher sales prices. Finally, there is an interaction effect between distance to and visibility of environmental amenity, which means holding the quality of the view constant, the more distant the view, the smaller the view premium. The research findings offer insights to conservation agencies in estimating the direct benefits of land protection.