Open space premium near commercial zones - a case study in the City of Corona, California

The study estimates the economic impact of urban open space on residential properties in the city of Corona, California. Using 4243 non-arms-length transactions and a spatial error model (SEM) hedonic model, we estimate the mean marginal willingness-to-pay (MWTP) for increasing the area of urban open space by 10% within 100 m buffer of residential properties. The results show that urban open space adds value to homes. In addition, we discover that the impacts of open space vary with the distance to the nearest commercial areas. The mean MWTP for open space appears to increase when properties are located closer to commercial zones.