Exploring the Green Premium: A Hedonic Pricing Study on House Prices in Municipalities Adjacent to Färnebofjärden and Tyresta National Parks

Abstract: This thesis conducts a hedonic pricing model with multiple regression analysis to examine the relationship between proximity to Färnebofjärden and Tyresta National Parks and house prices in adjacent municipalities between 2019 and 2020. The literature reviewed indicates a positive correlation, but it has various gaps which our thesis addresses. By utilising a theoretical framework on hedonic theory, walkability and total economic valuation we find a statistically significant relationship between proximity to national parks and house prices, which is homogenous between the parks. Specifically, we find a non-linear relationship and that willingness to pay for proximity to national parks is significantly dependent on the housing type. Furthermore, this thesis contributes to the field by providing evidence of a significant correlation and showing that environmental and urban attributes have implicit prices for housing. The identification of a non-linear relationship and housing type specifics adds depth to the understanding of this complex dynamics. In addition, to our knowledge this is the first study exploring how proximity to national parks impact house prices in Sweden. These findings have practical implications for homeowners, policymakers, and real estate developers in guiding decisions related to housing development, urban planning, and conservation efforts, ensuring sustainable and desirable living environments. Overall, this study enhances our understanding of the interplay between proximity to national parks, house prices, and housing type.