Wide open spaces: Estimating the willingness to pay for adjacent preserved open space

Each year, millions of dollars are spent transitioning open space to protected status, yet we do not know the value that existing homeowners place on adjacency to these protected land parcels. Between 2000 and 2013, the Pennsylvania Game Commission acquired over 85,000 acres across the state of Pennsylvania, thereby providing a promise of future openness for adjacent homeowners. This paper exploits the timing and spatial variation of these acquisitions to identify the housing premium associated with open space preservation. Results suggest that preservation increases the average adjacent home value by between $22,326 and $31,178. I analyze various sources of this premium and conclude that it is driven by a preserved view and not new access to public land. Further, analysis comparing preservation of the land to continuing vacancy shows that preservation is tax-neutral for local governments.