The Development of Hedonic Pricing by Integrating It With Non-monetary Valuation Methods

Abstract

Hedonic pricing is a popular econometric method of monetary valuation of nature. Three studies I conducted in Łódź, Poland are designed to verify the hypothesis that by integrating it with non-monetary valuation methods one can obtain a multidimensional view on the value of green spaces. The first employs a traditional hedonic pricing and serves as a baseline study. The second and third confirm the potential to integrate hedonic pricing with the concept of perceived attractiveness and biocultural value. The results show that in general green spaces positively influence the property prices. Integration with non-monetary valuation methods makes it possible to indicate aspects of green spaces important for real estate buyers: the type, size, perceived attractiveness; and the insignificant attribute - the biocultural value.