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Environmental Externalities and Residential Property Values: Externalized Costs along the House Price Distribution
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Environmental Externalities and Residential Property Values: Externalized Costs along the House Price Distribution
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Journal Article
Environmental Externalities and Residential Property Values: Externalized Costs along the House Price Distribution
2012
Overview
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.
