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Title: An interregional hedonic analysis of noxious facility impacts on local wages and property values

Conference ·
OSTI ID:10105369

Claims of property value loss are commonly raised by homeowners when noxious facilities are sited or when new information about the hazards of existing facilities is made public. While the capitalization of externalities into land values is consistent with economic theory, empirical measurement of impacts has not generated consistent results. This is true both for hedonic measurements as well as other types of econometric analyses. While it is well established that job and site risks have similar impacts on regional labor markets, there are no studies relating the presence of a broad range of noxious facilities to local wage premiums. In contrast, this study employs an interregional framework in a hedonic analysis of both wage and property markets and considers eight different facility classifications. This paper discusses the development of the hedonic model employed in this study. It develops more fully the theoretical advantages of the intercity model and alternative methods of deriving implicit prices for environmental amenities and disamenities. The unique data base and the structure of the estimated model are described. It also includes a discussion of the research findings. Major conclusions and suggestions for further research are presented.

Research Organization:
Argonne National Lab., IL (United States)
Sponsoring Organization:
USDOE, Washington, DC (United States)
DOE Contract Number:
W-31109-ENG-38
OSTI ID:
10105369
Report Number(s):
ANL/CP-74857; CONF-9111119-2; ON: DE92004719
Resource Relation:
Conference: National Regional Science Association conference,New Orleans, LA (United States),8-10 Nov 1991; Other Information: PBD: [1991]
Country of Publication:
United States
Language:
English