| By: |
Jan Rouwendal (VU University Amsterdam);
J. Willemijn van der Straaten (VU University Amsterdam, and CPB Netherlands Bureau for Economic Policy Analysis, The Hague) |
| Abstract: |
Although many researchers have investigated the value of open space in cities,
few of them have compared them to the costs of providing this amenity. In this
paper, we use the monocentric model of a city to derive a simple cost-benefit
rule for the optimal provision of open space. The rule is essentially the
Samuelson-condition for the optimal provision of a public good, with the price
of land as the appropriate indicator for its cost. The condition is made
operational by computing the willingness to pay for public and private space
on the basis of empirical hedonic price functions for three Dutch cities. The
conclusions with respect to the optimal provision of open space differ between
the three cities. Further investigation reveals that willingness to pay for
parks and public gardens increases with income, although not as fast as that
for private residential space. |
| Keywords: |
spatial planning; provision of public goods; cost-benefit analysis |
| JEL: |
R52 H41 D61 |
| Date: |
2008–01–07 |
| URL: |
http://d.repec.org/n?u=RePEc:dgr:uvatin:20080001&r=tur |