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Smelly local polluters and residential property values: A hedonic analysis of four Orange County (California) cities

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  • Jean-Daniel Saphores

    (University of California, Irvine)

  • Ismael Aguilar-Benitez

    (El Colegio de la Frontera Norte)

Abstract

We propose a simple framework combining GIS and hedonic pricing to evaluate the impacts of local industrial odors on surrounding residential houses for four Southern California cities. Using GIS, we flag houses located at various distances from car paint-shops and smelly polluters in the EPA's NET database. After accounting for heteroskedasticity through feasible GLS, we find a statistically significant reduction in house prices of up to 3.4\%. These results have implications for the local control of industrial odors.

Suggested Citation

  • Jean-Daniel Saphores & Ismael Aguilar-Benitez, 2005. "Smelly local polluters and residential property values: A hedonic analysis of four Orange County (California) cities," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 20(2), pages 197-218.
  • Handle: RePEc:emx:esteco:v:20:y:2005:i:2:p:197-218
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    File URL: http://estudioseconomicos.colmex.mx/archivo/EstudiosEconomicos2005/197-218.pdf
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    References listed on IDEAS

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    Cited by:

    1. Karolien De Bruyne & Jan Van Hove, 2013. "Explaining the spatial variation in housing prices: an economic geography approach," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1673-1689, May.
    2. Johan Eyckmans & Simon De Jaeger & Sandra Rousseau, 2013. "Hedonic Valuation of Odor Nuisance Using Field Measurements: A Case Study of an Animal Waste Processing Facility in Flanders," Land Economics, University of Wisconsin Press, vol. 89(1), pages 53-75.
    3. Hodge, Timothy R., 2011. "The Effect of Ethanol Plants on Residential Property Values: Evidence from Michigan," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2).
    4. Karolien De Bruyne & Jan Van Hove, "undated". "Explaining Spatial Variation in Housing Prices: An Economic Geography Approach," Regional and Urban Modeling 283600023, EcoMod.
    5. Turnquist, Alan & Fortenbery, T. Randall & Foltz, Jeremy D., 2008. "Progress or Devastation? The Effects of Ethanol Plant Location on Local Land Use," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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