Property Value Impacts of an Environmental Disamenity

Posted: 14 Nov 2001

See all articles by Diane Hite

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology

Wen S. Chern

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Fred Hitzhusen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Alan Randall

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics; Ohio State University - Sustainable & Resilient Economy Discovery Theme; The University of Sydney - School of Economics

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Abstract

The purpose of this paper is to quantify the property value impacts of a change in environmental quality by using the hedonic price model. In particular, we focus on the impact of the presence of landfills on nearby residential real estate prices. We combine elements of an urban location choice and hedonic pricing model to estimate the effects of the presence of multiple environmental disamenities on residential real estate prices. We explicitly account for temporal effects by including housing transactions in areas with both open and closed landfills, and control for information effects. In addition, we treat property taxes and prices as being simultaneously determined. Our analysis suggests that closing landfills will not necessarily mitigate property value impacts.

Keywords: hedonic price model, property values, externalities, environment, urban, rural, regional economics

JEL Classification: R33, Q24, H23

Suggested Citation

Hite, Diane and Chern, Wen Shyong Charlie and Hitzhusen, Fred and Randall, Alan John, Property Value Impacts of an Environmental Disamenity. Available at SSRN: https://ssrn.com/abstract=290926

Diane Hite (Contact Author)

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36849
United States
334-844-5655 (Phone)
334-844-5639 (Fax)

Wen Shyong Charlie Chern

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Fred Hitzhusen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Alan John Randall

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Road
Columbus, OH 43210-1067
United States
614-292-6423 (Phone)

Ohio State University - Sustainable & Resilient Economy Discovery Theme ( email )

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

The University of Sydney - School of Economics ( email )

Rm 370 Merewether (H04)
The University of Sydney
Sydney, NSW 2006 2008
Australia

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