Environmental Contamination and House Values

Katherine Kiel

No 601, Working Papers from College of the Holy Cross, Department of Economics

Abstract: A house is a bundle of many goods: The number of bedrooms, bathrooms, the quality of local public services, the tidiness of a neighbor’s yard, and the quality of the local environment. If transactions in the housing market reflect the interaction of informed buyers and sellers, then the price that the house sells for is the sum of the prices the buyer is willing to pay for each individual characteristic of the house. It is this notion that motivates environmental economists to study property values. If individuals consider the local environment as a component of the house they purchase, then information on the house and its sales price allows researchers to ‘tease out’ the price that individuals would be willing to pay for environmental goods. This approach relies on the use of the hedonic price model.

Keywords: hedonic models; environmental prices; housing (search for similar items in EconPapers)
JEL-codes: Q51 Q53 R2 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2006-01
New Economics Papers: this item is included in nep-env, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Environmental Valuation: Interregional and Intraregional Perspectives, J. I. Carruthers and B. Mundy, B. (eds.), Ashgate:Aldershot, 2006.

Downloads: (external link)
https://hcapps.holycross.edu/hcs/RePEc/hcx/HC0601-Kiel_HouseValues.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hcx:wpaper:0601

Access Statistics for this paper

More papers in Working Papers from College of the Holy Cross, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Victor Matheson ().