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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: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/163/165
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    3. 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.
    4. Hajnal István, 2017. "Evaluation of stigmatized properties," Organization, Technology and Management in Construction, Sciendo, vol. 9(1), pages 1615-1626, December.
    5. 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), pages 1-20.
    6. Jin Hu & Xuelei Xiong & Yuanyuan Cai & Feng Yuan, 2020. "The Ripple Effect and Spatiotemporal Dynamics of Intra-Urban Housing Prices at the Submarket Level in Shanghai, China," Sustainability, MDPI, vol. 12(12), pages 1-17, June.
    7. Mei, Yingdan & Qiu, Jixiang & Wu, Jialu & Meng, Lina, 2021. "Do residents care about urban dumps? Evidence from individual housing transaction data," Land Use Policy, Elsevier, vol. 109(C).
    8. Yuan, Feng & Wu, Jiawei & Wei, Yehua Dennis & Wang, Lei, 2018. "Policy change, amenity, and spatiotemporal dynamics of housing prices in Nanjing, China," Land Use Policy, Elsevier, vol. 75(C), pages 225-236.
    9. 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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