Abstract
The urban heat island (UHI) provides direct evidence of human activities contributing to a feedback loop that changes ecosystem services by creating localized warming and differences in vegetated landscapes in areas around the urban core. This paper develops a new spatial-temporal panel estimator to recover consistent estimates of households’ valuation of coupled landscape and temperature ecosystem services. Using data from Phoenix, AZ, we estimate a hedonic price function using an extension of the Hausman-Taylor model to overcome challenges associated with the varying spatial scales of capitalization of landscape and temperature variables and omitted variables. We find a positive and economically significant marginal willingness to pay (MWTP) for measures of green landscaping at multiple spatial scales and a separate MWTP for a one degree (F) reduction in outdoor temperatures of $72 monthly.
Original language | English (US) |
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Pages (from-to) | 1053-1079 |
Number of pages | 27 |
Journal | Journal of the Association of Environmental and Resource Economists |
Volume | 4 |
Issue number | 4 |
DOIs | |
State | Published - Dec 1 2017 |
Keywords
- Green landscape
- Hausman-Taylor
- Hedonic price model
- Urban heat island
ASJC Scopus subject areas
- Economics and Econometrics
- Nature and Landscape Conservation
- Management, Monitoring, Policy and Law