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Hedonic Valuation of Odor Nuisance Using Field Measurements: A Case Study of an Animal Waste Processing Facility in Flanders

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  • Johan Eyckmans
  • Simon De Jaeger
  • Sandra Rousseau

Abstract

In this paper we estimate the external cost caused by odor from an animal waste processing facility in Flanders, using new odor measures based on field measurements. We compare four ways of incorporating odor nuisance: distance to the source, distance zones, continuous odor measures, and odor zones. The odor zones approach seems best suited to estimate the external costs. We test these specifications for some 1,400 observations of house sales transaction between 2004 and 2008. Results show that houses subject to moderate and severe odor nuisance sell at a discount of 5% and 12%, respectively, compared to houses without nuisance.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 89 (2013)
Issue (Month): 1 ()
Pages: 53-75

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Handle: RePEc:uwp:landec:v:89:y:2013:i:1:p:53-75

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Web page: http://le.uwpress.org/

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  1. Joseph A. Herriges & Silvia Secchi & Bruce A. Babcock, 2003. "Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values," Center for Agricultural and Rural Development (CARD) Publications, Center for Agricultural and Rural Development (CARD) at Iowa State University 03-wp342, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  3. Henrik Andersson & Lina Jonsson & Mikael Ögren, 2010. "Property Prices and Exposure to Multiple Noise Sources: Hedonic Regression with Road and Railway Noise," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 45(1), pages 73-89, January.
  4. Raymond B. Palmquist & Fritz M. Roka & Tomislav Vukina, 1997. "Hog Operations, Environmental Effects, and Residential Property Values," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 73(1), pages 114-124.
  5. Jeffrey P. Cohen & Cletus C. Coughlin, 2008. "Spatial Hedonic Models Of Airport Noise, Proximity, And Housing Prices," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 48(5), pages 859-878.
  6. G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
  7. V. Smith & Ju Huang, 1993. "Hedonic models and air pollution: Twenty-five years and counting," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 3(4), pages 381-394, August.
  8. Palmquist, Raymond B., 2006. "Property Value Models," Handbook of Environmental Economics, Elsevier, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 16, pages 763-819 Elsevier.
  9. Arthur C. Nelson & John Genereux & Michelle Genereux, 1992. "Price Effects of Landfills on House Values," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 68(4), pages 359-365.
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