Suburban vs. urban fringes entities' willingness to pay for amenities: Empirical research in Cracow city, Poland

Abstract

The aim of this paper is to estimate the value of selected amenities of infrastructure, space and public services on both sides of the cities' administrative borders and its territorial implications. The used method is the estimation of WTP. The method was addressed to households and companies located in the district adjoining areas which are administratively not part of the city, and that are judged to be strongly characterized by the processes of suburbanization. The conclusions of the study indicate that the administrative border of the city is polarized in terms of a household economic profile. Residents of both regions express their needs for amenities and suburban residents generally estimate their value higher. While firms from both areas are not interested in improvements, the administrative border of the city does not really differentiate businesses (size, employment, wages).