Abstract
Two contrasting theories purport to explain the effects of neighborhood non-residential use on residential property values. In traditional zoning theory, separating land from commercial land use is considered to protect residential environments from negative externalities such as noise, litter, and congestion. By contrast, contemporary planning principles including Smart Growth emphasize positive impacts of mixed land use on residential environment, which lead to more walkable and sustainable communities. This study attempts to empirically investigate how positive and negative externalities of commercial land use, referred to as “proximity effects” and “disamenity effects” respectively, affect residential land values. Using data gathered in Seoul, we pay attention to two particular aspects of commercial land use: spatial concentration and neighborhood scale. Spatial concentration is determined by the number of commercial employees present in the buffer zone around an individual residential parcel. We model four geographically distinct neighborhood scales as we compare spatial concentrations in and across commercial zones. Quadratic regression analyses of our data show the trade-off relationship that a higher spatial concentration of commercial land use in a neighborhood initially results in increased residential land values, but drops off beyond a threshold level by excessive noise or crowding.
Highlights
In many countries, zoning has been used as the vehicle for land use controls to mitigate offensive use of negative externalities
As the Box-Cox transformation is suitable to use for positive continuous variables, we investigated the specification of the functional forms for the dependent variable: Residential Land Price, and seven independent variables: Distance to Central Business District (CBD), Distance to Gangnam Business District (GBD), Distancd to Yeeouido Business District (YBD), Job-Hosing Ratio, Nearest Subway, Nearest Elementary, and Distance to Main Road
While taking into account the spatial concentration of employment, this paper verified the trade-off relationship between the proximity effect and the disamenity effect, which expands the views of locational attributes (Li) and Brown (1980) [1] and Matthews and Turnbull (2007) [3]
Summary
In many countries, zoning has been used as the vehicle for land use controls to mitigate offensive use of negative externalities. Traditional zoning systems are predicated on separation of residential land use from commercial or industrial land use From this point of view, commercial facilities are considered nuisances, luring crowds, and creating congestion, all of which together reduce residents’ quality of life. Advocates of New Urbanism and Smart Growth argue that adjacent commercial uses are no longer considered inherently in conflict with residential uses These contemporary planning approaches favor mixed land use: A combination of housing, office, retail, and other commercial spaces that benefit residents by lessening transportation costs and helping to create more walkable, vital, and sustainable communities. As previous empirical research has demonstrated conflicting outcomes concerning the effects of commercial land use in a neighborhood, Matthews and Turnbull (2007) [3] explored the trade-off between the proximity effect and the disamenity effect Their distance measurements did not account for the impact of the intensity of commercial activity
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