What are the impact of negative environmental externalities on residential prices?
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Negative environmental externalities significantly impact residential property prices, with various studies highlighting the multifaceted nature of these effects. Proximity to animal agricultural facilities, for instance, has been shown to negatively affect the value of residential housing, particularly for homes at or above median price levels, with the impact increasing for higher-priced homes . Similarly, environmental disamenities such as water and noise pollution have been found to result in lower house prices, underscoring the importance buyers place on environmental quality . The presence of hazardous facilities and the associated risks also play a crucial role in determining property values. For example, proximity to oil pipelines has been shown to decrease house prices, with the effect being highly localized and sensitive to the presence of other nearby land uses . Train whistle bans, intended to reduce noise externalities, have had mixed effects on home values, suggesting that the impact of such externalities can vary based on local context and may be temporary . Cultural beliefs and perceptions also influence the impact of environmental externalities on property values. In Chinese society, for instance, Feng Shui and views believed to bring good fortune, such as sea views, can significantly affect housing prices . Environmental risks, including those from proximity to contaminated sites, have been shown to reduce market values due to both direct remediation costs and stigma . Urban environmental quality, including noise and air pollution, negatively correlates with residential property values, reflecting the broader implications of environmental externalities on urban living . Lastly, litigation related to environmental externalities, such as air, water, and noise pollution, highlights the challenges homeowners face in seeking compensation for the depreciation of property values due to these externalities . In summary, negative environmental externalities have a profound and varied impact on residential property prices, influenced by factors such as proximity to pollution sources, local hazards, cultural beliefs, and legal outcomes.
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| Papers (10) | Insight |
|---|---|
33 Citations | Negative environmental externalities, such as noise from rail lines, can lower residential property values. However, the study found limited lasting impact on housing prices from Conrail's whistle ban actions. |
4 Citations | Negative environmental externalities, like wild animals in cities, can lower housing prices due to perceived risks or nuisances, contrasting with the positive value of nature proximity on residential prices. |
Open access•Posted Content 1 Citations | Negative environmental externalities, such as proximity to contaminated sites, can reduce residential property prices due to stigma and remediation costs, impacting market perception and value in non-monotonic ways over time. |
| Negative environmental externalities lead to household overconsumption due to imperfectly observed individual usage and imperfect intrahousehold altruism, reducing price sensitivity and necessitating optimal pricing adjustments to address both externalities. | |
| Negative environmental externalities, such as water and noise pollution, lead to lower residential prices due to buyers valuing environmental quality, resulting in negative capitalization of property values. | |
18 Citations | Negative environmental externalities, particularly from animal agricultural facilities, impact residential property values, with significant effects observed for houses at or above median price levels in Tippecanoe County, Indiana. |
1 Citations | The negative environmental externalities, such as proximity to oil pipelines, can lead to a decrease in residential property prices by 1.4% to 5.7%. |
Open access 01 Jan 2012 1 Citations | Negative environmental externalities like air pollution, noise pollution, and water seepage decrease property values in the UK. Litigation for compensation is challenging, with many receiving only small amounts. |
| Negative environmental externalities such as noise and air pollution can lower residential property values due to their impact on health risks and overall quality of life in urban areas. | |
31 Mar 2016 1 Citations | Negative environmental externalities, such as bad Feng Shui or undesirable views, can potentially lower residential prices due to beliefs in Chinese society about the influence of these factors on luck and fortune. |
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