A Double-Hurdle model of urban green areas valuation: Dealing with zero responses

Abstract

Due to the widespread support for public parks and open spaces in urban areas, there is an increasing need to analyse the social benefits that are generated by such amenities. The city of Valencia (Spain) has a large park that can be considered its green backbone due to its transversal layout running along 9 of the 19 districts into which the city is divided. A contingent valuation survey was therefore conducted in order to obtain the non-market benefits derived from the use of this park by the inhabitants of Valencia. In addition, to deal with the large number of zero responses obtained, a Double-Hurdle model was applied. The results show that this model is more appropriate than other, simpler approaches. They also show that willingness to pay is positively related with the respondent's income and education, as was expected. Another interesting finding is that willingness to pay is also affected by the section of the park in which the interview was conducted. The information gathered form this study is of interest to decision-making with regard environmental issues. © 2007 Elsevier B.V. All rights reserved.