• Journal of Environmental Impact Assessment
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• v.20 no.5
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• pp.729-745
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• 2011

The purpose of this paper is to estimate the external diseconomies of an unwelcomed facility on the nearby houses. The facility and the area studied are Dangin-Ri power plant in Mapo-Gu, Seoul and the residential district surrounding it respectively. The nearby housing prices have been changed according to the time and circumstances of the public announcements about the reconstruction or removal plans of the plant. These price changes are regarded as the capitalized values of the external diseconomies due to the plant. This study is based on the hedonic price theory in order to estimate the diseconomies in monetary value. The tools for the estimation are four models of multiple regression with the transaction price as the dependant variable and various housing characteristics including the external effects of the plant as the independent variables. The sample analyzed is 833 house transactions for the past 5 years in the research area. The facts found are as follows; First, the most suitable functional form for the estimation is confirmed to be the linear model. Second, there are significant differences in influence on the housing values among the independent variables, that is, locational characteristics, physical features, and environmental changes with time. Third, the external diseconomy is estimated as \80,137,807 in case that the plant would be reconstructed in the underground of the present site, whereon a substitutional public park would be constructed and as \59,142,248 in case that the plant would move away.

• Journal of Environmental Impact Assessment
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• v.21 no.2
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• pp.297-314
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• 2012

This study investigates the stigma effect of unwelcomed facilities on apartment prices through multiple regressions based on hedonic price method. The areas studied are Sang-gye Jugong 7, 9, 10 apartment complexes. The facilities analyzed are the Chang-dong Electric Subway Depot and the Do-bong Driver's License Agency. The factors studied include the environmental variable (the elapsed time since the announcement of the re-location of these facilities), the view commanding, the distance from Chang-dong Depot, the distance from Do-bong Driver's License Test Course, the distance from neighboring facilities (subway stations, schools, parks and so on), the floor and each dwelling's exclusive space. The data used are 2,822 sales which have been collected since January 1, 2006. The facts found are as follows; first, the view commanding and the distance from the unwelcomed facilities are statistically significant. second, the environmental variable, 'days' turns out to have a positive (+) and a negative (-) significant relationship with the dependent variable, 'price', in period II and period IV respectively. This implies that the stigma effect is real. third, there are significant differences in the influence on the apartment prices among the independent variables according to time. fourth, the stigma effect is estimated as 33,686,920 Korean won in the case of the apartments which have the view commanding and 30,311,844 won in the other case before the global economic crisis. This effect seems to decrease to 22,085,078 won after the crisis. These facts suggest that stigma effects could be considered as one of the benefits in the cost-benefit analysis of Chang-dong Depot re-location project to produce somewhat higher NPV or B/C ratio.

• Journal of the Korean Institute of Landscape Architecture
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• v.42 no.6
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• pp.39-49
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• 2014

Unpleasant facilities have been unwelcomed by residents within the region since they are considered to negatively influence the living conditions of the region. Yet recently, a park project within these unpleasant facility areas has begun to improve the negative impression of the region and the satisfaction of local residents has been shown to be very high. Also a park project within unpleasant facilities is found to have significant influence on the community, including resolving conflicts and building mutual friendships among residents by creating pleasant living conditions and improving the quality of life of local residents. The purpose of this study is to investigate how the park project within unpleasant facilities changes the satisfaction level of local residents and affects the sense of community. In order to do so, surveys were given to visitors of Seoul Maru Park, which was turned into a park from a sewage treatment center. According to the analysis result, after the sewage treatment center was recreated as Maru Park, citizen satisfaction was found to be very high. The sense of community that the visitors feel was found to be high in general, but the 'sense of connection and neighbor bonds' turned out to be lower compared to the 'sense of settlement and belonging.' A regression analysis was performed to determine the relative influence of visitor satisfaction on the sense of community. As a result, in the division of 'sense of settlement and belonging,' the satisfaction with ecological health was affected the most, followed by satisfaction with scenic beauty, whereas satisfaction with cleanness had no influence. In the division of 'sense of connection and neighbor bond,' none of the satisfaction with cleanness, ecological health and scenic beauty showed any influence in the analysis. According to the above result, a park project within unpleasant facilities brings a positive influence on the 'sense of settlement and belonging,' yet in order to improve the 'sense of connection and neighbor bond,' which is not influenced by the project, the adequate facilities and activity programs are considered to be necessary to change the residents' of sense of community.