Abstract
As the sophisticated method to evaluate the benefits of infrastructural projects based on a property value method, a hedonic approach has been widely used. The application of a hedonic approach requires real estate data, which is generally spatially dependent. “Spatial hedonic approach” has been widely recognized and established in both research fields—spatial econometrics and geostatistics. However, no significant researches have evaluated the benefits of an infrastructural project using spatial hedonic approach. This study discusses the consistency in using spatial hedonic approach with the general procedure to calculate the amount of benefits. Then, the study presents empirical analyses by applying the Spatial Autoregressive Error Model (SAEM), based on the spatial econometrics approach, and the Spatial Process Model (SPM), based on the spatial statistics approach.
