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Property Values in a Low Populated Area when Dual Noxious Facilities are Present
Author(s) -
Anstine Jeff
Publication year - 2003
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/1468-2257.00222
Subject(s) - factory (object oriented programming) , production (economics) , externality , hazardous waste , air pollution , business , natural resource economics , rural community , environmental science , economics , economic growth , waste management , engineering , chemistry , organic chemistry , computer science , programming language , macroeconomics , microeconomics
This paper examines how the presence of dual, disparate environmental disamenities located near each other impact property values in a semi‐rural area. A heavy metals manufacturing facility and a rubber‐compounding factory operate two and one half miles apart in a small community. The heavy metals manufacturing facility uses low‐level depleted uranium in its production. The level of production is small and the production process does not emit visible air pollution or odors that can be easily identified. Thus, if the surrounding community negatively perceives a potential risk, it is not through the channels of sight or smell. The rubber‐compounding factory emits foul odors and some visible air pollution. Thus, its negative externalities and potential risks are easily perceptible. Using the hedonic price technique, this paper examines the impact of the use of a non‐perceptible hazardous material in the production of a good on housing prices in a community when another more visible, noxious facility is present. The results show that noticeable disamenities are capitalized into housing values, while non‐visible ones are not.