How Much Are Amenities Worth? An Empirical Study on Urban Land and Housing Price Differentials across Chinese Cities
Abstract
:1. Introduction
2. Theoretical Model
3. Empirical Analysis
3.1. Empirical Specifications
3.2. Data and Variables
4. Results
4.1. Results of the Commodity Housing Price Equation
4.2. Results of the Industrial Land Price Equation
4.3. Implicit Prices for Consumer and Producer Amenities
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variables | Unit | Mean | Minimum | Maximum | Standard Deviation |
---|---|---|---|---|---|
Endogenous variables | |||||
Housing_price | RMB yuan/m2 | 9860 | 2206 | 30,587 | 5938 |
Industrial_land_price | RMB 10,000 Yuan/hectare | 781 | 102 | 2452 | 179 |
Adj_city_wage | Yuan per year | 30,282 | 14,057 | 60,460 | 5785 |
Amenities for households | |||||
Jan_temp | °C | 1.5 | −27 | 23 | 8.8 |
Jul_temp | °C | 27.0 | 16 | 30 | 2.6 |
Precipitation | mm | 962 | 75 | 2705 | 532 |
Altitude | meter | 310 | 2 | 2392 | 485 |
So2_density | ton/km2 | 9.4 | 0.05 | 72.98 | 10.23 |
Pupil_teacher_ratio | na | 20.98 | 3.8 | 38.09 | 5.34 |
Hospital_bed_psn | # of beds/10,000 person | 86.76 | 16.97 | 221.23 | 34.87 |
Built_green_coverage | % | 29.97 | 5.98 | 67.99 | 8.78 |
Minimum_wage | RMB Yuan per month | 1002 | 880 | 2200 | 286 |
Amenities for firms | |||||
High_way_density | 1/km | 0.58 | 0.03 | 2.64 | 0.35 |
Service_labor_ratio | % | 9.76 | 3.13 | 20.67 | 3.38 |
College_students_psn | %% | 583 | 0.00 | 2453 | 472 |
Manufacture_labor_share | % | 0.57 | 0.01 | 6.77 | 0.55 |
Tax_rate | % | 26.68 | 14.81 | 28 | 2.40 |
Employment_state_owned_ratio | % | 55.34 | 17.66 | 86.86 | 14.32 |
Amenities for both households and firms | |||||
Urban_bus_psn | # of buses/10,000 person | 6.224 | 0.32 | 102.8 | 7.216 |
Coast | na | 0.09 | 0 | 1 | 0.28 |
Urban_non_ag_popu_density | 10,000 person/km2 | 1.1239 | 0.2989 | 4.2125 | 0.4731 |
Housing_Price | Industrial_Land_Price | |||||
---|---|---|---|---|---|---|
Independent Variables | Estimate | t | Pr(>|t|) | Estimate | t | Pr(>|t|) |
Intercept | 598 | 0.40 | 0.69 | −147 | −0.84 | 0.40 |
Adj_city_wage | 0.37 | 15.77 | 0.00 | −6.06 × 10−3 | −1.84 | 0.06 |
Jan_temp | 3.79 | 2.21 | 0.03 | --- | --- | --- |
Jul_temp | −3.12 | −0.83 | 0.40 | --- | --- | --- |
Precipitation | −0.06 | −2.90 | 0.00 | --- | --- | --- |
Altitude | −0.03 | −2.57 | 0.01 | --- | --- | --- |
So2_density | −15.9 | −10.32 | 0.00 | --- | --- | --- |
Pupil_teacher_ratio | −1.14 | −0.13 | 0.90 | --- | --- | --- |
Hospital_bed_psn | 1.38 | 2.90 | 0.00 | --- | --- | --- |
Built_green_coverage | 2.25 | 9.74 | 0.00 | --- | --- | --- |
Minimum_wage | −1.36 | −1.73 | 0.09 | --- | --- | --- |
Urban_bus_psn | 13.65 | 1.98 | 0.05 | 0.30 | 0.33 | 0.75 |
Urban_non_ag_popu_density | 209.58 | 1.99 | 0.05 | 13.41 | 1.00 | 0.32 |
Coast | 376.87 | 1.90 | 0.06 | 36.87 | 1.92 | 0.06 |
High_way_density | --- | --- | --- | 99.43 | 2.48 | 0.01 |
Service_labor_ratio | --- | --- | --- | 9.40 | 8.65 | 0.00 |
College_students_psn | --- | --- | --- | 0.89 | 5.79 | 0.00 |
Manufacture_labor_share | --- | --- | --- | 78.49 | 5.01 | 0.00 |
Tax_rate | --- | --- | --- | 7.83 | 2.21 | 0.03 |
Employment_state_owned_ratio | --- | --- | --- | −0.76 | −1.35 | 0.18 |
# of observations | 254 | 254 | ||||
Joint R-squared | 0.64 | 0.64 |
Amenities for Households | Amenities for Firms | |||
---|---|---|---|---|
Variables | Implicit Price of One Unit of Change | Implicit Price of One Standard Deviation | Implicit Price of One Unit of Change | Implicit Price of One Standard Deviation |
Jan_temp (1 °C warmer in January) | 106.32 | 878 | --- | --- |
Jul_temp (1 °C hotter in July) | --- | --- | --- | --- |
Precipitation (1 mm more annual precipitation) | −1.28 | −786 | --- | --- |
Altitude (1 m higher in altitude) | −2.09 | −1001 | --- | --- |
So2_density (one more ton per km2) | −78.96 | −753 | --- | --- |
Pupil_teacher_ratio (one percentage change in student teacher ratio) | --- | --- | --- | --- |
Hospital_bed_psn (one more bed per 10,000 people) | 25.32 | 479 | --- | --- |
Built_green_coverage (one percentage change urban green land) | 36.21 | 360 | --- | --- |
Minimum_wage (one more Yuan monthly) | −6.00 | −500 | --- | --- |
Urban_bus_psn (one more bus per 10,000 people) | 67.42 | 409 | --- | --- |
Coast (being on coast) | 3479 | 532 | 9863 | 2044 |
Urban_non_ag_popu_density (10,000 more people per km2) | 988 | 421 | --- | --- |
High_way_density (one more km per capita) | --- | --- | 10,103 | 2567 |
Service_labor_ratio (one percentage change in service employment) | --- | --- | 1876 | 3099 |
College_students_psn (one more college student per 10,000 people) | --- | --- | 5.68 | 1753 |
Manufacture_labor_share (one percentage change in manufacturing employment) | --- | --- | 11,099 | 5276 |
Tax_rate (one percent higher of tax rate) | --- | --- | 978 | 2109 |
Employment_state_owned_ratio (one Percentage change in state enterprise employees) | --- | --- | --- | --- |
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Song, Y.; Zhou, J.; Zhang, Y.; Wu, D.; Xu, H. How Much Are Amenities Worth? An Empirical Study on Urban Land and Housing Price Differentials across Chinese Cities. Land 2022, 11, 916. https://doi.org/10.3390/land11060916
Song Y, Zhou J, Zhang Y, Wu D, Xu H. How Much Are Amenities Worth? An Empirical Study on Urban Land and Housing Price Differentials across Chinese Cities. Land. 2022; 11(6):916. https://doi.org/10.3390/land11060916
Chicago/Turabian StyleSong, Yan, Jiang Zhou, Yingjie Zhang, Dingxin Wu, and Honghai Xu. 2022. "How Much Are Amenities Worth? An Empirical Study on Urban Land and Housing Price Differentials across Chinese Cities" Land 11, no. 6: 916. https://doi.org/10.3390/land11060916