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Estimating the Demand for Tree Canopy: A Second-Stage Hedonic Price Analysis in Portland, Oregon
- Land Economics
- University of Wisconsin Press
- Volume 86, Number 2, May 2010
- pp. 281-293
- Article
- Additional Information
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The benefits of large patches of tree canopy are estimated by applying a hedonic price model to the sale of single-family residential properties in Portland, Oregon. The first-stage analysis provides evidence of diminishing returns from increasing tree canopy past a certain level. The second-stage analysis uses a survey of property owners' preferences and socioeconomic characteristics to overcome the problem of endogeneity. Average benefit estimates for the mean canopy cover within ΒΌ mile of properties in the study area, using the second-stage model, are between 0.75% and 2.52% of the mean sale price.