Browse > Article
http://dx.doi.org/10.15266/KEREA.2020.29.3.335

Estimating WTP for the reduction of disamenity in the Seoul Metropolitan Area Landfill site using the Hedonic Pricing Model  

Kang, Heechan (Department of Economics of Incheon National University)
Publication Information
Environmental and Resource Economics Review / v.29, no.3, 2020 , pp. 335-362 More about this Journal
Abstract
Using the Hedonic pricing model using Box-Cox transformation, this paper estimated the marginal effect (implicit price) of odors from landfill in the metropolitan area on housing prices and the willingness to pay for changes in certain odor conditions. This paper utilized the proximity from the landfill in the metropolitan area as a environmental variable, and analyzed the effect of various housing characteristic variables on the sale price of apartments within a radius of 5 km from the landfill. In particular, because odors factor have various heterogeneity, we applied hedonic price models instead of stated-preference methods with various types of functional forms through Box-Cox transformation, considering the heterogeneity of each region. Estimates show that the marginal value (implicit price) for the distance from the odor source was 0.227 to 0.533 depending on the function type of the estimated model. In addition, when other house factors are the same, the marginal willingness to pay for a distance of 1km from the odor source was calculated to be 16.79 to 51.76 thousand dollar depending on the type of function. Finally for the general Box-Cox model, the annual WTP was estimated to be 3,229dollar.
Keywords
Odor; disamenity; Hedonic pricing model; Box-Cox transformation; Willingness to pay;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Kiel, K. A., "Measuring the Impact of the Discovery and Cleaning of Identified Hazardous Waste Sites on House Values," Land Economics, Vol. 71, No. 4, 1995, pp. 428-435.   DOI
2 Krinsky, I., and A. L. Robb, "On Approximating the Statistical Properties of Elasticities." Review of Economic and Statistics, Vol. 68, 1986, pp. 715-719.   DOI
3 Lansford, N. H. Jr., and L. L. Jones, "Marginal Price of Lake Recreation and Aesthetics, A Hedonic Approach," Journal of Agricultural and Applied Economics, Vol. 271, 1995, pp. 212-223.   DOI
4 Levesque, T. J., "Modeling the Effects of Airport Noise on Residential Housing Markets: A Case Study of Winnipeg International Airport," Journal of Transport Economics and Policy, Vol. 282, 1994, pp. 199-210.
5 Palmquist, R. B., F. M., Roka, and T. Vukina, "Hog Operations, Environmental Effects, and Residential Property Values," Land Economics, Vol. 731, 1997, pp. 114-124.   DOI
6 Park, T., J. B. Loomis, and M. Creel, "Confidence Intervals for Evaluating Benefits Estimates from Dichotomous Choice Confidence Valuation Studies," Land Economics, Vol. 67, No. 1, 1991, pp. 64-73.   DOI
7 Preez, M. D., "Determining the negative effect on house values of proximity to a landfill site by means of an application of the hedonic pricing method," South African Journal of Economic and management Science, No. 2, 2009.
8 Ready, R. C., "Do Landfills Always depress nearby property values?," Rural Development Paper, No. 27, 2007.
9 Rosen, S., "Hedonic prices and Implicit Markets: Product Differentiation in pure competition," Journal of Political Economy, Vol. 82, No. 1, 1974, pp. 34-55.   DOI
10 Slovic, P., "The construction of preference," American Psychologist, Vol. 50, 1995, pp. 365-371.   DOI
11 Uyeno, D., S. W. Hamilton, and A. J. G. Biggs, "Density of Residential Land Use and the Impact of Aircraft Noise," Journal of the Transport Economics and Policy, Vol. 271, 1993, pp. 3-18.
12 Smith, V. K., and R. B. Palmquist, "Temporal Substitution and the Recreational Values of Coastal Amenities," Resources for the Future, 1993, p. 21.
13 국토교통부, 2018년 주거실태조사 결과, 2019.
14 김광임, "쓰레기 매립자 기피의사 추정: 수도권 매립장의 사례", 자원경제학회지, 제5권 제2호, 1996, pp. 303-315.
15 김진유․ 이창무, "어메니티요소가 주택가격에 미치는 영향력의 시계열적 변화", 국토계획, 제 40권 제1호, 2005, pp. 59-742.
16 수도권매립지공사(2019), 통계연감.
17 신상영․ 김민희․ 목정훈, "서울숲 조성이 주택가격에 미치는 영향", 서울도시연구, 제7권 제4호, 2006, pp. 1-17.
18 이성태․ 이광석, "공항소음에 대한 퍼지 헤도닉 분석", 자원․ 환경경제연구, 제17권 제1호, 2008, pp. 147-164.
19 임영태․ 손의영, "아파트 가격에 내재된 도로교통 소음가치 추정", 대한교통학회지, 제19권 제4호, 2001, pp. 24-36.
20 허세림․ 곽승준, "헤도닉가격기법을 이용한 주택특성의 잠재가격 추정", 주택연구, 제2권 제2호, 1994, pp. 27-42.
21 환경부, 수도권매립지 환경상 영향조사 결과보고, 2004.
22 Bouvier, R. A., J. M. Halstead, K. S. Conway, and A. B. Manalo, "The Effect of Landfills on Rural Residential Property Values: Some Empirical Analysis," Journal of Regional Analysis and Policy, Vol. 30, No. 2, 2000, pp. 23-37.
23 Djemaci, B., "Using a Contingent valuation approach for improved Household solid waste management in Algeria," MPRA, Paper No. 68443, posted 19 Dec 2015 14:51 UTC
24 Box, G. E. P., and D. R. Cox, "An analysis of Transformation," Journal of Royal Statistical Studies, Series B, Vol. 26, 1964, pp. 211-252.
25 Chau, K. W., S. K. Wong, A. T, Chan, and K. Lam, "How Do People Price Air Quality: Empirical Evidence from Hong Kong," Paper Submitted for Presentation at the 12th Annual Conference of the Pacific Rim Real Estate Society January 22 to 25, 2006, The University of Auckland Business School Auckland, New Zealand, 2006.
26 Chekmezova, O., "Do We Pay for Clean Air: Hedonic Price Analysis of Housing Market in Kyiv," A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Economics National University Kyiv-Mohyla Academy Economics Education and Research Consortium Master's Program in Economics, National University, Kyiv-Mohyla Academy, 2007.
27 Fonta, W. M., H. E. Ichoku, K. K. Ogujiuba, and J. O. Chukwu, "Using a Contingent Valuation Approach for Improved Solid Waste Management Facility: Evidence from Enugu State, Nigeria, Journal of African Economics, Vol. 19, No. 2, 2007, pp. 277-304.
28 Haab, T. C. and K. E. McConnell, Valuing Environmental Natural Resources: The Econometrics of Non-Market Valuation. Northampton, MA: Edward Elgar Publishing, 2002.
29 Hicks, R., 'A Comparison of Stated and Revealed preference Methods for Fisheries Management', American Agricultural Economics Association 2002 Annual Meeting, Long Beach, California, 2002.
30 Hughes, W. T. Jr. and C. F. Sirmans, "Traffic Externalities and Single-family House Prices," Journal of Regional Science, Vol. 324, 1992, pp. 487-500.   DOI