 Impacts of mining on property values in Kalgoorlie-Boulder, Western AustraliaChomba Kolala, Maksym Polyakov and James Fogarty Resources Policy, 2020, vol. 68, issue C Abstract: Mining activities have a positive impact on local communities through providing formal employment opportunities in the local area. However, the air and noise pollution associated with surface mining represent a negative externality for residents in communities near mining activity. To support urban planning processes, accurate information on both the positive and negative impacts of surface mining is required. In this study, we estimate the dis-amenity of proximity to a large open-pit gold mine in Kalgoorlie, Western Australia, that has been capitalised into residential property values. To estimate the impact of proximity to the mine on property values, we use sales data for 21,850 residential properties sold in Kalgoorlie-Boulder between 1990 and 2018. We use distance to the mine as a measure of the impact. We control for spatial heterogeneity using spatial fixed effects. We found that residential properties located within two kilometres of the mine trade at a 20% to 30% discount to similar residential properties located at least six to seven kilometres from the mine. Our results can be used for planning appropriate buffer zones around mining activities. Date: 2020 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:68:y:2020:i:c:s0301420719308803 DOI: 10.1016/j.resourpol.2020.101777 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.