The environmental economic impact of woodland: a two-stage hedonic price model of the amenity value of forestry in britain

Woodland is an important part of the environment providing economic benefits through its use in commercial timber production and through its value as an amenity. As well as providing recreation for visitors, woodland is also important to local residents for whom it provides leisure opportunities and a source of aesthetic enjoyment. It is well known that the price of a house may reflect a household's willingness to pay to live near an environmental amenity, such as a forest, and to gain access to it. The nature of this relationship may be examined by applying the hedonic price technique, an econometric method which investigates house prices and the variation in structural and environment characteristics over space. This study uses a two-stage hedonic price model to explore the impact of forest type on house price, and to estimate the demand for broadleaved woodland for a sample of houses adjacent to Forestry Commission land.