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Economic assessment of odour emissions: an application of Hedonic Price Method

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  • Vinicio Vannucci
  • Loredana Torsello

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    Abstract

    Environmental economics suggests a number of techniques to assess public goods. Such methods, surrogating traditional market mechanism, allow estimations of willingness to pay for improving environmental quality. In the case study proposed in this paper an hedonic price method is implemented to assess the benefits deriving by an improvement of environmental quality due to a reduction in odor emissions. In fact, odor impacts are usually the main pressure perceived by inhabitants living near sugar production plants (localized in Tuscany, in the current case study). The implementation of the hedonic price method allows to exhibit that this kind of externalities affect the real estate market in the nearby the area

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    Bibliographic Info

    Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 485.

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    Date of creation: Jul 2006
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    Handle: RePEc:usi:wpaper:485

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    Keywords: hedonic price method; economic assessment of natural resources; odor nuissance;

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    1. Taff, Steven J. & Tiffany, Douglas G. & Weisberg, Sanford, 1996. "Measured Effects Of Feedlots On Residential Property Values In Minnesota: A Report To The Legislature," Staff Papers 14121, University of Minnesota, Department of Applied Economics.
    2. Raymond B. Palmquist & Fritz M. Roka & Tomislav Vukina, 1997. "Hog Operations, Environmental Effects, and Residential Property Values," Land Economics, University of Wisconsin Press, vol. 73(1), pages 114-124.
    3. Alan A. Diener & R. Andrew Muller & A. Leslie Robb, 1997. "Willingness-to-Pay for Improved Air Quality in Hamilton-Wentworth: A Choice Experiment," Department of Economics Working Papers 1997-04, McMaster University.
    4. repec:wop:minnas:9612 is not listed on IDEAS
    5. Lake, Mary Beth & Easter, K. William, 2002. "Hedonic Valuation Of Proximity To Natural Areas And Farmland In Dakota County, Minnesota," Staff Papers 13407, University of Minnesota, Department of Applied Economics.
    6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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