SciELO - Scientific Electronic Library Online

 
vol.12 número2Direct use values of selected vegetation resources in the Okavango Delta Wetland índice de autoresíndice de materiabúsqueda de artículos
Home Pagelista alfabética de revistas  

Servicios Personalizados

Articulo

Indicadores

Links relacionados

  • En proceso de indezaciónCitado por Google
  • En proceso de indezaciónSimilares en Google

Compartir


South African Journal of Economic and Management Sciences

versión On-line ISSN 2222-3436
versión impresa ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.12 no.2 Pretoria jul. 2009

 

ARTICLES

 

Determining the negative effect on house values of proximity to a landfill site by means of an application of the hedonic pricing method

 

 

M du PreezI; T LotteringII

IDepartment of Economic History, Nelson Mandela Metropolitan University
IIAberdare Power Cables, Port Elizabeth

 

 


ABSTRACT

This study applied the hedonic pricing method to determine whether a disused, solid waste landfill site has an adverse effect on the prices of low-cost houses in New Brighton, a neighbourhood of the Nelson Mandela Metropole, Eastern Cape, South Africa. The results of the study show that the landfill site has a negative effect on New Brighton house prices. The average increase in house value is R36.00 per one hundred metres from the landfill site. This increase amounts to 0.44 percent of the value of a house per 100 metres from the landfill. When the change in value is summed for all the properties in the sample area (allowing for variation in value change due to differing distances from the landfill site) the total disamenity effect of the landfill site is approximately R1.4 million.

JEL Q57


 

 

“Full text available only in PDF format”

 

 

References

ADLER, K.J., COOK, Z.L., FERGUSON, A.R., VICKERS, M.J., ANDERSON, R.C. & DOWER, R.C., 1982. The benefits of regulating hazardous disposal: land values as an estimator. Washington D.C.: US Environmental Protection Agency.         [ Links ]

BAKER, B.P., 1982. Land values and surrounding waste disposal facilities. Department of Agricultural Economics, New York College of Agriculture and Life Sciences, Cornell University, Ithaca, New York.         [ Links ]

BOUVIER, R.A., HALSTEAD, J.M., CONWAY, K.S. & MANALO, A.B., 2000. The effects of landfills on rural residential property values: some empirical analysis. Journal of Regional Analysis and Policy, 30:(2): 23-37.         [ Links ]

CENSUS 2001. Census of Population Density in the NMMM. http://www.statssa.gov.za/census2001. (Accessed: 18th August 2007).         [ Links ]

GAMBLE, H.B., DOWNING, R.H., SHORTLE, J. & EPP, D.J., 1982. Effects of solid waste disposal sites on community developments and residential property values. Institute for Research on Land and Water Resources, Pennsylvania State University.         [ Links ]

HANLEY, N. & SPASH, C., 1993. Cost-benefit analysis and the environment. Vermont: Edward Elgar Publishing Ltd.         [ Links ]

HAVLICEK, J., 1985. Impacts of solid waste disposal sites on property values, In: Tolley, G.S., Havlicek, J. & Favian, R. (Eds). Environmental policy: solid waste, 4. Cambridge, MA: Ballinger.         [ Links ]

HAVLICEK, J., RICHARDSON, R. & DAVIES, L., 1971. Measuring the impacts of solid waste disposal site location on property values. American Journal of Agricultural Economics, 53: 869.         [ Links ]

HORN, C., 2005. Personal communication. Manager: Nelson Mandela Metropolitan Municipality, Port Elizabeth.         [ Links ]

LOMBERG, C.R., ROSEWARNE, P.N., RAYMER, D.A. & DEVEY, D.G., 1996. Research into groundwater abstraction in the Port Elizabeth municipal area. Pretoria: Water Research Commission, Report No. 515/1/97.         [ Links ]

NELSON, A.C., GENEROUX, J. & GENEROUX, M., 1992. Price effects of landfills on house values. Land Economics, 68: 359-365.         [ Links ]

READY, R.C., 2005. Do landfills always depress nearby property values? Rural Development Paper, No. 27. The Northeast Regional Center for Rural Development. Pennsylvania State University.         [ Links ]

REDDY, VS. & GARDINER, R., 2003. Air dispersion modeling and assessment of risks associated with landfill gas emissions from the Ibhayi landfill site. SRK Consulting Engineers and Scientists, Port Elizabeth.         [ Links ]

REICHERT, A.K., 1991. The impact of landfills on residential property values. Cleveland, OH.: Cleveland State University.         [ Links ]

ROSEN, S., 1974. Hedonic prices and implicit markets: product differentiation in pure competition. Journal of Political Economy, 82: 34-55.         [ Links ]

VAN KOOTEN, G.C. & BULTE, E., 2001. The economics of nature: managing biological assets. Boston: Blackwell Publishers Ltd.         [ Links ].

ZEISS, C. & ATWATER, J., 1989. Waste facility impacts on residential property values. Journal of Urban Planning and Development, 15: 64-80.         [ Links ]

Creative Commons License Todo el contenido de esta revista, excepto dónde está identificado, está bajo una Licencia Creative Commons