| Abstract |
This study aims to compare the effect of agricultural wholesale market and supermarket location
on the price of nearby apartments and to ascertain whether the agricultural wholesale market has
the characteristics of an undesirable facility deteriorating the real assets value. If the agricultural
wholesale market depreciates the value of real assets, it could hinder its role as a socially essential
facility. In order to solve this problem, it is necessary to consider how to adjust the imbalance
between benefits and harmful effects. In this study, the hedonic price model is set up as a basic
model, and spatial econometrics models are used to consider spatial dependence. Empirical data
is composed of apartment prices, apartment characteristics, and location characteristics. The results
show that apartment prices are positively affected by area, brand awareness, the number of parking
spaces, households, distance to agricultural wholesale market, and adjacency of middle school.
In contrast, apartment prices are negatively affected by elapsed years, distance to supermarket,
and adjacency of shopping mall and theaters. Especially, location effects of the agricultural wholesale
market are shown to be different from those of the supermarket. The apartment prices are lower
for the apartments adjacent to the agricultural wholesale market, but higher for the adjacent to
the supermarket. It seems that negative location effect of the agricultural wholesale market dominates
its positive effects. The implications of this study are as follows: first, the spatial econometrics
models with spatial dependence provide more robust estimation results than the hedonic price
model. Second, estimated parameters concerning the location of agri-marketing facilities empirically
show the local residents' negative perceptions about agri-marketing facilities. Third, this study is
expected to be a reference for selecting the location of the agricultural wholesale market.
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