Switzerland has a great appreciation for green space and water. With the increase in urbanization, the demand for environmental quality and the natural environmental becomes more important as well. Location of housing therefore plays an essential role in the price setting. The goal of this research is to assess the value of different environmental amenities, as well as structural house and neighbourhood characteristics, applying the hedonic pricing method to the housing market in Switzerland. With hedonic pricing we will be able to identify to what extent each characteristic explains the variation in house prices. A variety of new water related amenities will be included, namely water abundance and distances to the nearest lake, river, bathing site and wastewater treatment plant. Furthermore, a spatial component will be incorporated by using spatially explicit data and using a spatial version of the hedonic price model. Eventually, the study will give insight in the relative role of water in the capital value of houses across Switzerland.
In a follow-up study we will zoom in on several regions in Switzerland that differ from each other in terms of biogeography, water abundance and socio-economic characteristics. Using the benefit transfer method, the goal is to assess whether the spatial hedonic price functions are transferable within and across the different regions. It furthermore enables us to identify the role of spatial effects in this transferability.