Hedonic pricing and economic valuation of green spaces in the city of La Paz,Bolivia

Abstract

Several environmental services and goods (e.g., green spaces) are not formally commercialized in markets, which has significant consequences far public policy and prívate decision-making. This study allows valuing the green spaces of city of La Paz (Bolivia), based on empirical evaluation of the impact of green spaces on the price of housing, period 2015, An indirect method of environmental valuation was used, called "Hedonic Pricing Model", which is based on determining the effect -on housing prices- of variables, such as "units of green spaces", "structure of housing", location", among others, which finally allows giving economic value to green areas ofthe city. Results reveal that a 100% increase in the determining variable "green area vegetation units" would increase by 7 .04, the price per square meter of housing. Also, an in crease of 100% in the "distance between green spaces and housing" would cause a decrease in the unit price ofhouses by 6.80%. The Willingness to Pay (by owners) far the conservation of green spaces, by housing and per year, was US$. 134 .02 per square meter.