However, most of the research focus has been on the behavioral response of home owners as opposed more » to renters. One technique that has been employed to implicitly value impacts of noxious facilities is the intercity hedonic approach, which examines the wage and land rent differentials among cities that result from environmental amenities and disamenities. Ibis behavior would in turn affect labor and housing prices. As a result, one would expect people`s residential and employment choices to reflect a desire to avoid proximity to such facilities. The siting of noxious facilities, such as hazardous waste facilities, is often vigorously opposed by local residents. Major conclusions and suggestions for further research are presented. It also includes a discussion of the research findings. The unique data base and the structure of the estimated model are described. It develops more fully the theoretical advantages of the intercity model and alternative methods of deriving implicit prices for environmental amenities and disamenities. This paper discusses the development of the hedonic model employed in this study. more » In contrast, this study employs an interregional framework in a hedonic analysis of both wage and property markets and considers eight different facility classifications. While it is well established that job and site risks have similar impacts on regional labor markets, there are no studies relating the presence of a broad range of noxious facilities to local wage premiums. This is true both for hedonic measurements as well as other types of econometric analyses. While the capitalization of externalities into land values is consistent with economic theory, empirical measurement of impacts has not generated consistent results. 57 refs., 4 =, number = 3,Ĭlaims of property value loss are commonly raised by homeowners when noxious facilities are sited or when new information about the hazards of existing facilities is made public. ![]() Calculated implicit prices reveal that local residents are most averse to the presence of petrochemical refineries and nuclear power plants. Using Public Use Microdata from the 1980 United States Census, we show that property values and/or wages are significantly influenced by the existence of noxious facilities. We employ an intercity hedonic model to measure the joint property value and wage effects of a broad range of noxious facilities. Generally, distance from the facility is used to proxy exposure to the disamenity, although it is possible that the mere existence of a noxious facility in a region has an impact on local residents. Unfortunately, much of the empirical work on noxious facilities has focused on a narrow range of facility types, often within a single city. Moreover, local differentials in these prices can be used to implicitly value local amenities. Economists have long recognized that local environmental amenities influence wage rates and property values jointly.
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