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Does size really matter? Landfill scale impacts on property values

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  • Jong Seok Lim
  • Paul Missios

Abstract

The economic advantage of constructing and operating large-scale landfills over small-scale landfills has been used to justify regional landfills as a solution to the municipal waste disposal problem. In addition to the dampening effects on social efforts to divert waste away from landfills, higher external costs of larger landfills may in fact offset the private cost advantages. In this study, the negative effects of a landfill that are capitalized in property values of houses located in the proximity of two landfill sites of significantly different sizes in Toronto, Canada, are examined. The results suggest that larger landfills have greater adverse impacts on property values than smaller landfills, implying consumers perceive (and markets reflect) differences in external costs.

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  • Jong Seok Lim & Paul Missios, 2007. "Does size really matter? Landfill scale impacts on property values," Applied Economics Letters, Taylor & Francis Journals, vol. 14(10), pages 719-723.
    • Handle: RePEc:taf:apeclt:v:14:y:2007:i:10:p:719-723
    DOI: 10.1080/13504850600592531
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    Cited by:

    1. Yoo, James & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J. & Kinzig, Ann P. & Perrings, Charles, 2013. "The value of agricultural water rights in agricultural properties in the path of development," Ecological Economics, Elsevier, vol. 91(C), pages 57-68.
    2. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
    3. Mario du Preez & Mehmet Balcilar & Aarifah Razak & Steven F. Koch & Rangan Gupta, 2014. "House Values and Proximity to a Landfill: A Quantile Regression Framework," Working Papers 201442, University of Pretoria, Department of Economics.
    4. Macauley, Molly K., 2009. "Waste Not, Want Not: Economic and Legal Challenges of Regulation-Induced Changes in Waste Technology and Management," RFF Working Paper Series dp-09-11, Resources for the Future.
    5. Massimiliano Mazzanti & Anna Montini & Francesco Nicolli, 2011. "Embedding landfill diversion in economic, geographical and policy settings," Applied Economics, Taylor & Francis Journals, vol. 43(24), pages 3299-3311.
    6. Giani Ionel Grădinaru & Ildiko Ioan, 2012. "Estimating the Impact of Landfill Proximity on the Value of Real Estate Goods," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 38-49, February.
    7. Daunfeldt, Sven-Olov & Mihaescu, Oana & Öner, Özge & Rudholm, Niklas, 2019. "Retail and place attractiveness: The effects of big-box entry on property values," HFI Working Papers 1, Institute of Retail Economics (Handelns Forskningsinstitut).
    8. Iafolla, Valentina & Mazzanti, Massimiliano & Nicolli, Francesco, 2010. "Are You SURE You Want to Waste Policy Chances? Waste Generation, Landfill Diversion and Environmental Policy Effectiveness in the EU15," Sustainable Development Papers 91010, Fondazione Eni Enrico Mattei (FEEM).
    9. Mazzanti, Massimiliano & Montini, Anna & Nicolli, Francesco, 2008. "Embedding Landfill Diversion in Economic, Geographical and Policy Settings Panel based evidence from Italy," Sustainability Indicators and Environmental Valuation Working Papers 44221, Fondazione Eni Enrico Mattei (FEEM).
    10. Mei, Yingdan & Qiu, Jixiang & Wu, Jialu & Meng, Lina, 2021. "Do residents care about urban dumps? Evidence from individual housing transaction data," Land Use Policy, Elsevier, vol. 109(C).
    11. Prince O. Njoku & Joshua N. Edokpayi & John O. Odiyo, 2019. "Health and Environmental Risks of Residents Living Close to a Landfill: A Case Study of Thohoyandou Landfill, Limpopo Province, South Africa," IJERPH, MDPI, vol. 16(12), pages 1-27, June.
    12. Rita Yi Man Li & Herru Ching Yu Li, 2018. "Have Housing Prices Gone with the Smelly Wind? Big Data Analysis on Landfill in Hong Kong," Sustainability, MDPI, vol. 10(2), pages 1-19, January.
    13. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Rifiuti generati, rifiuti in discarica ed efficacia delle politiche ambientali in Europa," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 103-135.
    14. Amornchai Challcharoenwattana & Chanathip Pharino, 2018. "Analysis of Socioeconomic and Behavioral Factors Influencing Participation in Community-Based Recycling Program: A Case of Peri-Urban Town in Thailand," Sustainability, MDPI, vol. 10(12), pages 1-16, November.
    15. Yoo, James & Perrings, Charles & Kinzig, Ann & Abbott, Joshua K. & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J., 2012. "The Value of Water Rights in Agricultural Properties in the Phoenix Active Management Area," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124095, Agricultural and Applied Economics Association.
    16. Benoît Chèze, 2007. "Une méta-analyse des études d’évaluation monétaire par la méthode des prix hédoniques du coût externe des installations de traitement des déchets," EconomiX Working Papers 2007-23, University of Paris Nanterre, EconomiX.
    17. Ham, Yun-Ju & Maddison, David J. & Elliott, Robert J.R., 2013. "The valuation of landfill disamenities in Birmingham," Ecological Economics, Elsevier, vol. 85(C), pages 116-129.
    18. Mazzanti, Massimiliano & Montini, Anna & Nicolli, Francesco, 2009. "The dynamics of landfill diversion: Economic drivers, policy factors and spatial issues," Resources, Conservation & Recycling, Elsevier, vol. 54(1), pages 53-61.
    19. John Braden & Xia Feng & DooHwan Won, 2011. "Waste Sites and Property Values: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 175-201, October.
    20. Richard C. Ready, 2010. "Do Landfills Always Depress Nearby Property Values?," Journal of Real Estate Research, American Real Estate Society, vol. 32(3), pages 321-340.

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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices

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