Environmental Externalities and Residential Property Values: Externalized Costs along the House Price Distribution

• Published in: Land economics Vol. 88; no. 2; pp. 241 - 250
• Main Authors: Kuethe, Todd H, Keeney, Roman
• Format: Journal Article
• Language: English
• Published: Madison University of Wisconsin Press 01-05-2012
• Subjects: Agricultural areas; agricultural structures and facilities; Agriculture; Data analysis; Dwelling value; Economic externalities; Economic models; Economic theory; economic valuation; Economic value; Economics; Externalities; Externality; Housing; Housing market; Housing prices; Impact analysis; Industrial waste; Land economics; prices; Property values; Quantile regression; Quantiles; Real estate; Regression; Regression analysis; Residential; Solid wastes; Statistical significance; Studies; U.S.A; Waste management; Wastes; Indiana; United States > US; Tippecanoe County Indiana; USA, Indiana; USA, Indiana, Tippecanoe Cty
• ISSN: 0023-7639; 1543-8325
• DOI: 10.3368/le.88.2.241

This study examines the impacts of animal agricultural facilities on the value of residential housing. Through a quantile regression framework we are able to show that the estimated price impacts are not uniform across the distribution of housing prices, and a statistically significant relationship exists only for houses at or above median price levels. These estimated price impacts also increase as the percentile increases. For comparison, the model also includes the proximity to three other waste facility types: industrial, solid, and septic. Our dataset features 14,785 single-family residential transactions in Tippecanoe County, Indiana, over the period 1993–2006.