IDEAS home Printed from https://ideas.repec.org/p/ags/aaea01/20629.html
   My bibliography  Save this paper

Toward The Efficient Production Of The Discommodity Of Animal Odor: A Hedonic Price Approach To Economies Of Scale

Author

Listed:
  • Thomas, Michael H.
  • Goldsmith, Peter D.
  • Milla, Katherine
  • Stratis, Nicholas
  • Bruton, Natasha

Abstract

Controversy surrounding confined animal feeding operations (CAFO) is becoming more commonplace. In several regions of the country CAFOs and local residents have had disputes over odors emanating from these operations. Viewing the CAFO as jointly producing products with utility (e.g., meat) and disutility (e.g., foul odor), it is possible to determine an efficient level of production for both products that is market-based. The authors propose a hedonic price model based upon real-estate transactions adjacent to CAFOs to establish a market-based estimate of the degree and extent of odor disutility. Using the results of the hedonic model, the authors suggest that a simple model of odor dispersal can be used to address the issue of economies of scale and the production of the disutility odor. Specifically, the final outcome should reveal if there is more or less disutility produced with an industry that is intensively or extensively managed.

Suggested Citation

  • Thomas, Michael H. & Goldsmith, Peter D. & Milla, Katherine & Stratis, Nicholas & Bruton, Natasha, 2001. "Toward The Efficient Production Of The Discommodity Of Animal Odor: A Hedonic Price Approach To Economies Of Scale," 2001 Annual meeting, August 5-8, Chicago, IL 20629, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20629
    DOI: 10.22004/ag.econ.20629
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/20629/files/sp01th02.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.20629?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. 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..
    2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    3. 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.
    4. Freeman, A Myrick, III, 1974. "Air Pollution and Property Values: A Further Comment," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 554-556, November.
    Full references (including those not matched with items on IDEAS)

    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. Ida Ferrara & Stephen McComb & Paul Missios, 2007. "Local Willingness-to-Pay Estimates for the Remediation of the Sydney Tar Ponds in Nova Scotia," Canadian Public Policy, University of Toronto Press, vol. 33(4), pages 441-458, December.
    2. Olivier Marchand & Eric Skhiri, 1995. "Prix hédoniques et estimation d'un modèle structurel d'offre et de demande de caractéristiques [Une application au marché de la location de logements en France ]," Économie et Prévision, Programme National Persée, vol. 121(5), pages 127-140.
    3. Muhammad Irfan, 2007. "The Impact of Open Sewerage Smell on House Rent in Rawalpindi," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 46(4), pages 803-815.
    4. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2015. "The Housing Market Impacts of Shale Gas Development," American Economic Review, American Economic Association, vol. 105(12), pages 3633-3659, December.
    5. Nicodemo, Catia & Raya, Josep Maria, 2012. "Change in the distribution of house prices across Spanish cities," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 739-748.
    6. Osseni, Abdel & Bareille, Francois & DUPRAZ, Pierre, 2018. "Decoupling Values Of Agricultural Externalities According To Scale: A Spatial Hedonic Approach In Brittany," 2018 Annual Meeting, August 5-7, Washington, D.C. 273998, Agricultural and Applied Economics Association.
    7. Georg Nöldeke & Larry Samuelson, 2015. "Investment and Competitive Matching," Econometrica, Econometric Society, vol. 83(3), pages 835-896, May.
    8. Xiandeng Jiang & Zheng Pan & Ningru Zhao, 2023. "Relative Value vs Absolute Value: Housing Wealth and Labor Supply," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 41-76, January.
    9. Robert J. Hill & Daniel Melser, 2008. "Hedonic Imputation And The Price Index Problem: An Application To Housing," Economic Inquiry, Western Economic Association International, vol. 46(4), pages 593-609, October.
    10. Huang, Chung L. & Lin, Biing-Hwan, 2006. "A Hedonic Analysis on the Implicit Values of Fresh Tomatoes," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25404, International Association of Agricultural Economists.
    11. Alexandre Tangerini & Nils Soguel, 2005. "Evaluation monétaire de la qualité du paysage. Monetary valuation of the landscape quality," Urban/Regional 0507002, University Library of Munich, Germany.
    12. FADIJI, Damilare & OKOJI, Luke & AKERELE, Dare, 2021. "Quality Of Life For Occupational Risks Of Cocoa Farm Workers In Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(01), March.
    13. Gaetano Lisi, 2013. "On the Functional Form of the Hedonic Price Function: A Matching-theoretic Model and Empirical Evidence," International Real Estate Review, Global Social Science Institute, vol. 16(2), pages 189-207.
    14. Juan Antonio Campos Soria & Ricardo Pagan Rodríguez, 2003. "Internal and external effects of quality on competitiveness: Applications for the hotel sector in Spain," ERSA conference papers ersa03p131, European Regional Science Association.
    15. Greene, David & Hossain, Anushah & Hofmann, Julia & Helfand, Gloria & Beach, Robert, 2018. "Consumer willingness to pay for vehicle attributes: What do we Know?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 258-279.
    16. Richard Bennett, 1995. "The Value Of Farm Animal Welfare," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 46-60, January.
    17. Christopher Higgins & Pavlos Kanaroglou, 2018. "Rapid transit, transit-oriented development, and the contextual sensitivity of land value uplift in Toronto," Urban Studies, Urban Studies Journal Limited, vol. 55(10), pages 2197-2225, August.
    18. Rodrigo Adao & Arnaud Costinot & Dave Donaldson, 2017. "Nonparametric Counterfactual Predictions in Neoclassical Models of International Trade," American Economic Review, American Economic Association, vol. 107(3), pages 633-689, March.
    19. Simon K.C. Cheung, 2017. "A Localized Model for Residential Property Valuation: Nearest Neighbor with Attribute Differences," International Real Estate Review, Global Social Science Institute, vol. 20(2), pages 221-250.
    20. Trojanek, Radoslaw & Huderek-Glapska, Sonia, 2018. "Measuring the noise cost of aviation – The association between the Limited Use Area around Warsaw Chopin Airport and property values," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 103-114.

    More about this item

    Keywords

    Livestock Production/Industries;

    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:ags:aaea01:20629. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.