Amenity Value of Green Space: Evidence from Philadelphia

Abstract

Assessing the amenity value of green space is important to urban revitalization. This paper examines the impact of vacant lots greened by the Pennsylvania Horticultural Society in Philadelphia for the period of 2007-2017 on housing prices. The paper uses a quasi-experimental design to estimate the effect of greening vacant land on the sale prices of nearby houses. We find a positive treatment effect of greening vacant space, with sale prices increasing by 4.3% (which varies by neighborhood income) and show that greening vacant land can eliminate the negative impact of vacant land on housing prices. We also implement and demonstrate the importance of sample selection bias adjustment for the identification of the effect of greening on housing prices.