Relationship among land price, entrepreneurship, the environment, economics, and social factors in the value assessment of Japanese cities

Abstract

Assessing the value of local areas and cities, including examining the entrepreneurial, environmental, economic, and social dimensions of sustainability, has become key to fostering development. Such assessments can be conducted using a land-price function. This study analysed the land-price function using a geographically weighted regression model of land price, and explanatory variables related to entrepreneurial, environmental, economic, and social factors. To consider these factors, specific data scores were taken into account. A correlation analysis showed that six variables are essential for future value analyses: these are entrepreneurship, nature conservation, resource recycling, social vitality, the local government's financial viability, and environmental quality. Using these six variables to conduct preliminary regression analyses via four models, the study found that entrepreneurship, social vitality, and environmental quality have a positive impact on land prices in local areas and cities, while nature conservation, resource recycling, and the local government's financial viability have a negative impact. The result of a geographically weighted regression analysis showed that the areas around large cities in Japan have benefitted more from entrepreneurship and social vitality than have the areas around small and mid-sized cities. While large cities may be better equipped to promote environmental policies, small and mid-sized cities could promote entrepreneurship and social vitality policies using their environmental advantages.