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

  • Johan Eyckmans
  • Simon De Jaeger
  • Sandra Rousseau

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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File URL: http://le.uwpress.org/cgi/reprint/89/1/53
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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
Contact details of provider: Web page: http://le.uwpress.org/

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  1. Jeffrey P. Cohen & Cletus C. Coughlin, 2008. "Spatial Hedonic Models Of Airport Noise, Proximity, And Housing Prices," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 859-878.
  2. J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
  3. 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.
  4. 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, vol. 3(4), pages 381-394, August.
  5. Henrik Andersson & Lina Jonsson & Mikael Ogren, 2010. "Property prices and exposure to multiple noise sources: hedonic regression with road and railwy noise," Working Papers 47267, Institut National de la Recherche Agronomique, France.
  6. Joseph A. Herriges & Silvia Secchik & JBruce A. Babcock, 2005. "Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values," Land Economics, University of Wisconsin Press, vol. 81(4).
  7. 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..
  8. Arthur C. Nelson & John Genereux & Michelle Genereux, 1992. "Price Effects of Landfills on House Values," Land Economics, University of Wisconsin Press, vol. 68(4), pages 359-365.
  9. Palmquist, Raymond B., 2006. "Property Value Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 16, pages 763-819 Elsevier.
  10. G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
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