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

Listed author(s):
  • Vinicio Vannucci
  • Loredana Torsello


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    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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    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
    Handle: RePEc:usi:wpaper:485
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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Holtman, Charles & Taff, Steven J. & Meyer, Aaron J. & Leitch, Jay A., 1996. "An Inquiry Into The Relationship Of Wetland Regulations And Property Values In Minnesota," Staff Papers 13816, 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..
    7. Abeles-Allison, Mark & Connor, Larry J., 1990. "An Analysis of Local Benefits and Costs of Michigan Hog Operations Experiencing Environmental Conflicts," Agricultural Economic Report Series 201396, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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