Evaluating the spillover value of ecological products from urban rivers eco-restoration: A quasi-natural experiment in Wuhan, China

Abstract

The widespread eco-restoration of urban river (ERUR) plays a crucial role in realizing the value of ecological products, contributing to the achievement of the United Nations’ sixth Sustainable Development Goal, “Clean water and sanitation”. However, accurately evaluating the value of ecological products remains challenging due to their status as public resources. To address this issue, it is essential to assess the spillover value of ecological products, such as housing premiums, as a means to visualize their worth. This study aims to provide an accurate evaluation of the spillover value of ecological products resulting from the eco-restoration of three black-odorous rivers in Wuhan, China. The research utilizes a regression discontinuity design and analyzes data from 2563 secondhand housing transactions to assess the extent to which the ERUR contributes to the appreciation of housing prices. The regression analysis results indicate a significant increase in housing prices, and the robustness tests validate this finding. Therefore, it can be concluded that the eco-restoration efforts generated a spillover value for ecological products. Specifically, the eco-restoration of the three rivers led to an approximate 9%-10% rise in housing prices. Furthermore, the magnitude of the housing premium aligns with the outcomes of a public satisfaction survey, suggesting that the ERUR with the highest level of public satisfaction generated the greatest housing premium. The study demonstrates the value spillover effects of ecological products resulting from the eco-restoration of urban rivers, providing valuable insights for policymakers. These finding can aid in the improvement of ERUR policies, guide urban planning, and promote the provision if high-quality ecological products.