Evaluating the Externality of Nursery Facilities: Evidence from Suginami Ward, Tokyo

Abstract

Providing nursery facilities is an important policy tool to promote gender equality at work and nurture a favorable environment for childbearing. In the meanwhile, the neighboring property owners sometimes oppose the opening of the facility. Their main concern stems from the potential dis-amenity such as noise problems and congestion during the commuting time. In this study, we evaluate these externality effects concerning the nursery facilities through the Hedonic pricing method. The parametric and semiparametric analysis using posted rental property data in the metropolitan Tokyo area indicates a complex overlap of positive and negative externality effects. Negative externality outweighs the properties located in the close vicinity of the facilities, whereas properties further away from them exhibit net positive effects that diminish over distance.