Islam, Kawsar & Ahmed,. 2002, Open spaces in Dhaka city: A study on use of parks in Dhaka city corporation areas. Department of Urban regional planning, BUET.

Problem Statement 01

As a result, residential areas of Dhaka city turn into overcrowded, dirty and unhealthy environment and lack of open spaces. Shortage of open spaces due to the population growth and urbanization is considered in the keynote as the most alarming threat to the living environment of Dhaka. This study is concerned with the valuation of open spaces, especially parks and water bodies of different urban neighborhoods of Dhaka city in economic terms.

Research Questions 04

The context of the study - the economic valuation of open spaces - is essentially based on the valuation of the benefits of open space, because well-designed and managed open spaces are the key to more livable and sustainable cities within the competitive processes of globalization through clusters different of their benefits. such as social, environmental and physical and economic. To protect all these benefits of open spaces, and to ensure the contribution to the quality of urban life, they must be generated and planned, designed and maintained sufficiently well. Otherwise, an open space that is poorly designed and maintained, and dangerous that can impair the quality of life.

Objectives of the Study 04

To access the implication of these determinants on the property price by constructing the hedonic price model. To estimate the implicit price in monetary terms that individuals are willing to pay to use the benefits of open spaces.

Limitations of the Study 05

All open spaces are classified according to the nature of the land and type of open space use. The concept of the "total economic value" (TEV) of a resource has been presented in a variety of sources (Pearce and Turner, 1990, Aylward and Barbier, 1992, Munasinghe, 1993). There is no correlation between the implicit price of a housing unit and the size of the housing unit's living area.

There is no correlation between the implicit house price and the size of the plot. There is no correlation between the implicit house price and the age of the building. There is no correlation between the implicit house price and the orientation of the building.

The implicit price of a residential unit is not differentiated according to the age of the building. There is no relationship between the implied price of a housing unit and the size of the living area of the housing unit. There is no relationship between the implied price of a housing unit and the size of the lot.

There is no connection between the implicit price of the housing unit and the age of the building. There is no relationship between the implicit price of the home and the share of vacant homes. This can be considered as a consequence of the greater possibility of having a view of open spaces.

The size of open space (park or lake) - VAN2 is positively related to house price. Size of open space (park or lake) - VAN2 is positively related to implied house price.

Scope of the Study 05

Significance of the Research 06

Research Methodology 08

Study Organization 09

Summary 11

LITERATURE REVIEW

Definitions of urban open spaces 13

Urban open spaces are typically undeveloped land within urbanized areas set aside to provide public recreational opportunities as well as the chance to experience natural areas and wildlife habitat. The landscape of urban open spaces can vary from playing fields to highly maintained environments to relatively natural landscapes. Areas outside city limits, such as state and national parks, are not considered urban open spaces.

Benefits of Open Spaces 13

Social Benefits 13
Health Benefits 14
Environmental Benefits 15
Economic Benefits 15

Recently, there has been great interest in urban design in connecting urban open spaces to create pedestrian and cycling routes between residential areas and community facilities such as shops and schools. Among all these economic benefits, as Kwak et al. 2003) indicate, the amenity values of open spaces have received special attention in recent years. Using the methods developed by economics, it is possible to make quantitative valuations for open spaces (Freeman 1993, Haab and McConnell 2002).

Typologies of urban open spaces 16

Green space is land that consists primarily of unsealed, permeable, soft surfaces such as soil, grass, shrubs, and trees. Areas of green space available for public access and enjoyment but with only low amenity provision. Green space designed to accommodate sports; including sports fields, playgrounds, golf courses and other outdoor activities.

Table 2.1: Based on Dunnett, N (2002), Typology of Urban Green Spaces

Valuation of Open Space 24

Valuation of Non Market Goods 24

However, some benefits (such as nice views or convenient opportunities for recreation) accrue mainly to homeowners who live near open spaces. In a competitive housing market, we expect that potential home buyers will bid up the prices of homes near open space to obtain these benefits, and therefore the externalities generated by proximity to open space will be reflected in nearby home values (Anderson, et al.. 2003). This article aims to reveal the monetary value of open spaces by using a hedonic pricing model of residential property values.

Economic valuation of open space 25

Basic concepts of economic valuation 26
Methods of economic valuation 30

Stated preference method 30
Revealed preference method 32

Although there is nothing particularly original in the idea that the total value of a resource is the sum of component values across the entire population of individuals receiving benefit. Non-use values have been found to constitute a significant part of the total economic value in the context of many natural resources, particularly where the resource in question is unique or the impact is irreversible. These include travel costs (petrol, train tickets, etc.), opportunity costs of time and possibly an entry fee.

Hedonic Price Method (HPM) 33

Emergence and historical development of HPM 34
Assumptions of HPM 36
Advantage and disadvantages of HPM 38
Variables used in HPM 41
Functional forms of HPM 42
Applications of HPM 45
Evaluation 46

1988) examined how measurement errors in marginal attribute prices vary with the shape of the hedonic price function. Luttik (2000) stated that the essence of the hedonic pricing method is to compare situations with a specific attribute and situations without it. The application of the hedonic price method in the housing market theoretically consists of two stages.

Studies on economic valuation 47

Studies in wider context: Environment 47

Studies used Hedonic Price Method 47
Studies used other methods 51

Studies in open space context 52

Studies used HPM 52
Studies used other methods 61

For example, the value of climate can be positive or negative depending on the characteristics. 2004) proved the positive influence of the desirable climatic characteristics on property values. Nevertheless, a relatively small number of studies investigated the value of view facilities, as pointed out by Benson et al. For example, Benson et al. 1998) examined the value of view amenities in single-family housing markets.

In the following, a detailed review of the previous empirical studies on economic valuation of open spaces is given in chronological order. And there is an inverse relationship between the property's selling price and its distance from a green. Loomis suggested that the predictive power of the hedonic price equation can be an alternative to traditional property valuation techniques when agencies need to.

Their findings suggest that both proximity and size of urban recreational parks have a small but significant positive effect on property values. The study also confirmed that the price of housing and proximity to the nearest park were substitutes for the acres of nearby city parks. They indicated that the results can be used to assess the profitability of urban forest management.

Considering the substantive debate about the public value of private landscapes, the contingent valuation (CV) debate, and the processes of greenway planning and implementation, Lindsey and Knaap (1999) looked for the willingness to pay for urban greenway projects .

Evaluation 64

Then the respondents who participated in the experiment were asked to evaluate the alternatives using the bidding game method, which is one of the elicitation methods used in contingent valuation. According to the results, Fukahori and Kubota pointed out that acceptable costs were strongly related to amenity ratings for each of the two street design projects. Therefore, further research is needed to investigate the impact of open spaces on property values in different countries and in different real estate markets such as Dhaka.

Previous studies on open space valuation have mainly focused on the quantity and sign of open space value, as most of these studies have been conducted within the boundaries of the disciplines of economics or environmental economics. However, finding out only the amount or the sign of the value is not entirely sufficient for proper evaluation in the decision-making process. Thus, there is a need for studies to look for causes to better understand the relationship between open space attributes and their values.

However, such studies will require the view of the urban designer as the attributes of open space can only be properly assessed by a designer. Analyzing these results and the availability of required data, the study will use hedonic regression analysis to estimate the value of open space amenities.

Summary 65

There is no correlation between the implicit house price and the number of floors in the house. There is no correlation between the implicit price of the housing unit and the population density in the area. There is no correlation between the implicit price of the housing unit and the proportion of vacant houses.

There is no relationship between the implied housing unit price and the proportion of residents attending school (ages 5-24) in the census block group. There is no correlation between the implied price of the housing unit and the average household income of the residents. There is no relationship between the implied house price and the walking distance from home to the nearest school.

The implicit price of the housing unit is not differentiated depending on the facade treatment (Brick/RCC finish) of the housing unit. The implicit price of the housing unit is not differentiated depending on the number of floors in the housing unit. There is no correlation between the implicit house price and the number of floors in the house.

There is no relationship between the implied price of the housing unit and the population density of the area. There is no relationship between the implied housing unit price and the proportion of residents attending school (ages 5-24) in the census block group. There is no relationship between the implied price of the housing unit and the average household income of the residents.

There is no relationship between the implied house price and the distance in feet from the house to the nearest school. There is no connection between the implicit price of the apartment and the view from the house to the nearest park or lake.