Land Values Surrounding Waste Disposal Factilities
Baker, Brian P.
The effects that disamenities have on the enjoyment of property are frequently capitalized into the value of property. One example of a disamenity is a hazardous waste disposal facility. While the literature on siting these facilities frequently mentions that opening a new facility depresses property values, there is little empirical evidence available that supports such statements. An overview of the nature and the problems of the disposal of hazardous waste introduces this report. The liability setting for disposal is then explored to see what effect the burden of liability has on the abatement of externalities. Next, criteria for siting hazardous waste disposal facilities are examined and assumptions of the behavior of consumers in the residential real-estate market are stated. Three case studies were selected: (1) a publicly owned landfill not suspected of containing hazardous waste, (2) an offsite hazardous waste disposal facility and, (3) an onsite hazardous waste disposal facility. The land market in the neighborhood of these locations are estimated and the results of these estimates are reported and interpreted. Comparisons are made between the case studies. In conclusion, the existence of a hazardous waste disposal facility distorts property values and distance from the facility can be given a coefficient to estimate the changes in values.
A.E. Ext. 82-32
Charles H. Dyson School of Applied Economics and Management, Cornell University