By how much does Yarakon Park increase the value of the apartments next to it, and what is the economic loss from the deterioration of the coral reef in Eilat
Zafarir Rinat, Haaretz (Wala!)
Yarkon Park. The total added value of the apartments next to the park is 37 million dollars
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https://www.hayadan.org.il/parkvalue.html
One of the constant arguments of those who support development and construction is that economic progress justifies damage to natural resources and that areas designated for parks or nature reserves can be sacrificed in favor of a highway or an industrial zone. However, in recent years research activity has been expanding worldwide and in Israel, proving that these resources have great economic value and that this must be taken into account when discussing construction plans.
Recently, Jeffrey Wiglos from the Inter-University Institute in Eilat, in collaboration with researchers from the Universities of Haifa and Bar Ilan, completed a study in which the economic impact of the deterioration of the coral reef in Eilat was examined. The purpose of the study was to give an economic assessment of various characteristics of the reef - the clarity of the water, the richness of the animal species and the condition of the corals.
Divers arriving in the area were shown video clips of the reef in various states. The divers were asked how much money they were willing to pay, in addition to the current fee per dive, to improve the condition of the reef. An analysis of the answers showed that the respondents were willing to add NIS 5 to 11.8 to improve the condition of the reef. The willingness to pay increased as a more significant improvement in the condition of the reef was promised. If you multiply the amount that the divers who were asked were willing to pay for a significant improvement in the condition of the reef in the number of annual dives in Eilat, a few hundred thousand, you arrive at about 13 million shekels per year.
The researchers define this amount as the social cost of the damages caused to the reef. This is only a part of the total social cost of the reef damage, because in Eilat there is extensive activity of diving with only snorkels and of boats with a transparent bottom, which allows observation of the reef. These activities are also affected due to the deterioration in the condition of the reef.
The socio-economic value of the Yarkon Park was estimated in a research work by Nurit Zakai from the Faculty of Architecture and Urban Planning at the Technion, which was completed last year. Zakai tested the effect of the park on the value of the apartments next to it. In addition, she conducted interviews with visitors to the park and asked them how much money they were willing to pay for the use of the park.
The inspection of the value of the apartments was done in the area between Arlozorov Street in Tel Aviv and Yarkon Park. It showed that an apartment located up to a hundred meters from the park is more expensive by $136 per square meter than an apartment located about a kilometer away from it. This is an additional $11 for an 83 square meter apartment. The total added value of the apartments thanks to the immediate proximity to the park is 37 million dollars. This is a minimum estimate because this calculation did not include apartments slightly more than a hundred meters from the park and apartments in the neighborhoods next to the park in Ramat Gan.
According to the interviews conducted by Zakai, households are willing to pay for the preservation of the park a one-time payment (to be spread over a year) of approximately NIS 514. If you assume that all visitors to the park (about 220 thousand households per year) are willing to pay this amount, you get more than XNUMX million shekels.
Zakhai's research shows that there is considerable economic value to the park's existence. This value is much smaller than the values that could be obtained if real estate uses were allowed in the park areas. However, the strength of the economic estimate test is that it points to another type of benefit from a place such as a large urban park. The temperatures in their surroundings are much lower than the temperatures in other areas (the difference reaches three and a half degrees). The parks also allow flood drainage, the existence of a rich variety of flora and fauna and the enrichment of groundwater.
From a social point of view, parks help urban renewal in areas that have suffered abandonment and allow people who do not have a car to engage in recreation and leisure activities near their homes. The importance of these benefits will only increase in the future when the other open spaces disappear in favor of construction.
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