IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v18y2000i6p681-696.html
   My bibliography  Save this article

Improving Land Compensation Procedures via Gis and Hedonic Pricing

Author

Listed:
  • Iain R Lake
  • Andrew A Lovett
  • Ian J Bateman
  • Brett H Day

Abstract

One of the results of new road construction is often a reduction in the price of nearby properties. In the United Kingdom property owners can be compensated for this loss through the Land Compensation Act. The appropriate level of compensation is currently determined by valuers and is mainly based upon their expertise and skill. This study aims to determine what the correct level of compensation should be. It has been specifically designed to fulfil the requirements of current legislation and can be integrated into existing compensation procedures. This was achieved through a hedonic pricing study that relates current property prices to a wide range of factors. These variables include the structure, neighbourhood, accessibility, and environment of the property, in addition to the impact of nearby roads. These were all created through GIS and large-scale digital data. The study, which is based on over 3500 property sales in Glasgow, Scotland, suggests that property prices were depressed by 0.202% for each decibel increase in road noise. This result has enabled a more streamlined compensation procedure to be developed and demonstrates that compensation claims can be estimated at the road-development stage. This would allow any compensation claims to be assessed prior to road construction and inform the design of noise-reduction measures.

Suggested Citation

  • Iain R Lake & Andrew A Lovett & Ian J Bateman & Brett H Day, 2000. "Improving Land Compensation Procedures via Gis and Hedonic Pricing," Environment and Planning C, , vol. 18(6), pages 681-696, December.
    • Handle: RePEc:sae:envirc:v:18:y:2000:i:6:p:681-696
    DOI: 10.1068/c9911j
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/c9911j
    Download Restriction: no
    File URL: https://libkey.io/10.1068/c9911j?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Farber, Stephen, 1998. "Undesirable facilities and property values: a summary of empirical studies," Ecological Economics, Elsevier, vol. 24(1), pages 1-14, January.
    2. Doss, Cheryl R. & Taff, Steven J., 1996. "The Influence Of Wetland Type And Wetland Proximity On Residential Property Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(01), pages 1-10, July.
    3. William C. Metz & David E. Clark, 1997. "The Effect of Decisions About Spent Nuclear Fuel Storage on Residential Property Values," Risk Analysis, John Wiley & Sons, vol. 17(5), pages 571-582, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julii S. Brainard & Andrew P. Jones & Ian J. Bateman, 2006. "Exposure to Environmental Urban Noise Pollution in Birmingham, UK," Chapters, in: Ysé Serret & Nick Johnstone (ed.), The Distributional Effects of Environmental Policy, chapter 6, Edward Elgar Publishing.
    2. Cho, Seong-Hoon & Newman, David H., 2005. "Spatial analysis of rural land development," Forest Policy and Economics, Elsevier, vol. 7(5), pages 732-744, August.
    3. Contreras, Víctor & Garay, Urbi & Santos, Miguel Angel & Betancourt, Cosme, 2014. "Expropriation risk and housing prices: Evidence from an emerging market," Journal of Business Research, Elsevier, vol. 67(5), pages 935-942.
    4. Cho, Seong-Hoon & Newman, David H. & Wear, David N., 2003. "Community Choices And Housing Decisions: A Spatial Analysis Of The Southern Appalachian Highlands," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35209, Southern Agricultural Economics Association.
    5. Sotirios Thanos & Abigail L. Bristow & Mark R. Wardman, 2015. "Residential Sorting And Environmental Externalities: The Case Of Nonlinearities And Stigma In Aviation Noise Values," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 468-490, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. I.J. Bateman & A.P. Jones & A.A. Lovett & I.R. Lake & B.H. Day, 2002. "Applying Geographical Information Systems (GIS) to Environmental and Resource Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(1), pages 219-269, June.
    2. Lee, Kye Woo & Yoo, Se Jong, 2018. "Measuring Nuclear Power Plant Negative Externalities through the Life Satisfaction Approach: The Case of Ulsan City," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 40(1), pages 67-83.
    3. Cho, Seong-Hoon & Poudyal, Neelam C. & Roberts, Roland K., 2008. "Spatial analysis of the amenity value of green open space," Ecological Economics, Elsevier, vol. 66(2-3), pages 403-416, June.
    4. Andres Jauregui & Qin Fan & Jacquelin Curry, 2023. "House Price Capitalization of Stormwater Retention Basins: Evidence from Fresno-Clovis Metropolitan Area in California," The Journal of Real Estate Finance and Economics, Springer, vol. 67(4), pages 606-626, November.
    5. Dietrich Earnhart, 2006. "Using Contingent-Pricing Analysis to Value Open Space and Its Duration at Residential Locations," Land Economics, University of Wisconsin Press, vol. 82(1), pages 17-35.
    6. Katherine Kiel, 2006. "Environmental Contamination and House Values," Working Papers 0601, College of the Holy Cross, Department of Economics.
    7. Boes, Stefan & Nüesch, Stephan & Wüthrich, Kaspar, 2015. "Hedonic valuation of the perceived risks of nuclear power plants," Economics Letters, Elsevier, vol. 133(C), pages 109-111.
    8. Grislain-Letrémy, Céline & Katossky, Arthur, 2014. "The impact of hazardous industrial facilities on housing prices: A comparison of parametric and semiparametric hedonic price models," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 93-107.
    9. Jeffrey P. Cohen & Robert G. Cromley & Kevin T. Banach, 2015. "Are Homes Near Water Bodies and Wetlands Worth More or Less? An Analysis of Housing Prices in One Connecticut Town," Growth and Change, Wiley Blackwell, vol. 46(1), pages 114-132, March.
    10. Dietrich Earnhart, 2001. "Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations," Land Economics, University of Wisconsin Press, vol. 77(1), pages 12-29.
    11. Seong-Hoon Cho & Dayton Lambert & Seung Kim & Roland Roberts & William Park, 2011. "Relationship between value of open space and distance from housing locations within a community," Journal of Geographical Systems, Springer, vol. 13(4), pages 393-414, December.
    12. McCluskey, Jill J. & Rausser, Gordon C., 2003. "Hazardous waste sites and housing appreciation rates," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 166-176, March.
    13. Cameron, Trudy Ann, 2006. "Directional heterogeneity in distance profiles in hedonic property value models," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 26-45, January.
    14. Paul Maliszewski & Elisabeth Larson & Charles Perrings, 2013. "Valuing the Reliability of the Electrical Power Infrastructure: A Two-stage Hedonic Approach," Urban Studies, Urban Studies Journal Limited, vol. 50(1), pages 72-87, January.
    15. Tajibaeva, Liaila & Haight, Robert & Stephen, Polasky, 2014. "Welfare and Biodiversity Tradeoffs in Urban Open Space Protection," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170602, Agricultural and Applied Economics Association.
    16. Modica, Marco, 2017. "Does the construction of biogas plants affect local property values?," Economics Letters, Elsevier, vol. 159(C), pages 169-172.
    17. McCluskey, Jill J. & Rausser, Gordon, 1999. "Stigmatized Asset value: Is It Temporary or Permanent?," CUDARE Working Papers 198679, University of California, Berkeley, Department of Agricultural and Resource Economics.
    18. Shanti Gamper-Rabindran & Ralph Mastromonaco & Christopher Timmins, 2011. "Valuing the Benefits of Superfund Site Remediation: Three Approaches to Measuring Localized Externalities," NBER Working Papers 16655, National Bureau of Economic Research, Inc.
    19. Welsch, Heinz, 2016. "Electricity Externalities, Siting, and the Energy Mix: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 57-94, November.
    20. Gawande, Kishore & Berrens, Robert P. & Bohara, Alok K., 2001. "A consumption-based theory of the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 37(1), pages 101-112, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envirc:v:18:y:2000:i:6:p:681-696. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.