A new integrated index for urban quality of life based on estimated WTP from housing market

Abstract

The spatial distribution of public service facilities directly affects the efficiency of urban space and residents' quality of life. This paper has constructed a new Integrated Quality of Life Index, combining single indices for different kinds of public services using estimated willingness to pay (WTP) from housing market as weight, and then apply this new index to supply and demand matching analysis. Our case study is conducted in Beijing, where subway stations, primary schools and parks are selected as three typical kinds of public services. Firstly, we construct single supply index for each kind of public services using potential models. Secondly, we quantify residents' preferences of these different services, deriving their estimated WTP from hedonic models of housing price. Finally, we create the integrated quality of life index by combining three single indices weighted by the estimated WTPs, and then apply this index to supply and demand matching analysis across 129 jiedaos for different household income levels. This study provides a new attempt to build an integrated index of public services and matching analysis, and the research findings will help to improve the degree of consideration of demand-oriented factors in the supply of public services as well as urban residents' quality of life. © Springer-Verlag Berlin Heidelberg 2014.