The value of rural landscape in Aquitania (Colombia): application of spatial hedonic models in real estate analysis

Abstract

This study addresses the marginal economic value of environmental amenities, structural characteristics, neighborhood facilities, and accessibility on property in Aquitania - Colombia. Based on 400 assessed values of rural land property and on 21 characteristic variables of land amenities and facilities, the study compares three models: Ordinary Least Squares (ols), Spatial Lag Model (slm), and Spatial Error Model (sem). Results show that both slm and sem outperformed ols in identifying the significance of real estate attributes. Results shows that farmers value environmental amenities more than other attributes, being implicit the greater value of cattle over agriculture (onion) in land use. These models may help to support decisions in rural real estate economics.