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The Monetary Valuation of Environmental Externalities through the Analysis of Real Estate Prices

Author

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  • Vincenzo Del Giudice

    (University of Naples Federico II, P.le V. Tecchio 80, 80125 Naples, Italy)

  • Pierfrancesco De Paola

    (University of Naples Federico II, P.le V. Tecchio 80, 80125 Naples, Italy)

  • Benedetto Manganelli

    (University of Basilicata, Viale dell’Ateneo Lucano 10, 85100 Potenza, Italy)

  • Fabiana Forte

    (Second University of Naples, Via San Lorenzo 31, 81031 Aversa, Italy)

Abstract

This paper proposes a theoretical model of evaluation of environmental externalities based on the analysis of real estate prices. This issue is included in regional planning policies which include activities and interventions that produce economic and non-economic effects. The monetary assessment of economic and non-economic effects can be expressed as a forecast (ex ante) and/or following (ex post) such activities and interventions. The assessment of the economic impact, with particular reference to interventions and infrastructure work, is widely based on procedures which make use of market prices. The proposed model was applied to an actual case, considering the effects of noise pollution, produced by traffic from the Naples Beltway, on residential property.

Suggested Citation

  • Vincenzo Del Giudice & Pierfrancesco De Paola & Benedetto Manganelli & Fabiana Forte, 2017. "The Monetary Valuation of Environmental Externalities through the Analysis of Real Estate Prices," Sustainability, MDPI, vol. 9(2), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:2:p:229-:d:89627
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    References listed on IDEAS

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    21. Zi-Yun Zhang & Fang-Le Peng & Chen-Xiao Ma & Hui Zhang & Su-Juan Fu, 2021. "External Benefit Assessment of Urban Utility Tunnels Based on Sustainable Development," Sustainability, MDPI, vol. 13(2), pages 1-23, January.
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