Assessing the value of Yamuna Biodiversity park in Delhi: A hedonic price approach

• Box-Cox transformation model reveals significant factors in property pricing. • Proximity to Yamuna Biodiversity Park increases property values. • Poor air quality has a detrimental influence on residential property prices. • Neighbourhood status and market distance significantly influence prices. • Hedonic Pricing Method estimates the value of environmental amenities in metropolitan environments. The ongoing decline of global biodiversity is a significant concern, with wildlife populations experiencing an average reduction of 73 % over the past 50 years (WWF, 2024). Urban expansion poses an additional challenge, projected to consume between 280,000 and 490,000 square kilometers of natural habitats by 2050 (Ren et al., 2023). In response to these challenges, assessing the economic value of urban green spaces has become essential for promoting sustainable urban development. The study aims to quantify the economic benefits of biodiversity conservation in rapidly urbanizing areas. Focusing on the Yamuna Biodiversity Park in Delhi, India, the research employs the Hedonic Price Method to evaluate the economic value of the park. By analyzing property transaction data and spatial information, the study explores how proximity to the park impacts residential property values in the surrounding neighbourhoods. The Box-Cox transformation model reveals that environmental factors, including park proximity and air quality, play a significant role in determining property prices. Properties closer to the park tend to command higher prices, reflecting a positive premium associated with this proximity. Moreover, the analysis indicates that household income and proximity to the park are crucial elements influencing the perceived value of living nearby. On average, households are willing to pay approximately Rs. 274 for each kilometer closer they are to the park. These findings underscore the considerable economic benefits that the Yamuna Biodiversity Park provides, highlighting its importance in enhancing both quality of life and economic well-being in the surrounding communities. By offering valuable insights into urban environmental amenities, this research presents important implications for policymakers, urban planners, and stakeholders dedicated to fostering sustainable urban development and effective environmental conservation strategies.