The Monetary Valuation of Environmental Externalities through the Analysis of Real Estate Prices

Vincenzo Del Giudice, Pierfrancesco De Paola, Benedetto Manganelli and Fabiana Forte
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Vincenzo Del Giudice: University of Naples Federico II, P.le V. Tecchio 80, 80125 Naples, Italy
Pierfrancesco De Paola: University of Naples Federico II, P.le V. Tecchio 80, 80125 Naples, Italy
Benedetto Manganelli: University of Basilicata, Viale dell’Ateneo Lucano 10, 85100 Potenza, Italy
Fabiana Forte: Second University of Naples, Via San Lorenzo 31, 81031 Aversa, Italy

Sustainability, 2017, vol. 9, issue 2, 1-16

Abstract: This paper proposes a theoretical model of evaluation of environmental externalities based on the analysis of real estate prices. This issue is included in regional planning policies which include activities and interventions that produce economic and non-economic effects. The monetary assessment of economic and non-economic effects can be expressed as a forecast (ex ante) and/or following (ex post) such activities and interventions. The assessment of the economic impact, with particular reference to interventions and infrastructure work, is widely based on procedures which make use of market prices. The proposed model was applied to an actual case, considering the effects of noise pollution, produced by traffic from the Naples Beltway, on residential property.

Keywords: environmental externalities; real estate market; econometric models; evaluation under risk and uncertainty; noise pollution (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:2:p:229-:d:89627

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