Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86882
Authors: 
de Vor, Friso
de Groot, Henri L.F.
Year of Publication: 
2009
Series/Report no.: 
Tinbergen Institute Discussion Paper 09-035/3
Abstract: 
Industrial sites cause several negative externalities, such as traffic noise disturbance, congestion, and obstruction of view. In order to quantify the negative effects stemming from industrial sites, we estimate – using a hedonic pricing model – the impact of distance to industrial sites on residential property values. We use data on houses sold in the Randstad region and the province of Noord-Brabant (both located in the Netherlands) in the year 2005, together with data on characteristics of a substantial number of industrial sites in the same regions and period. The results reveal that the distance to an industrial site has a statistically significant negative effect on the value of residential properties. However, the effect is largely localized within a relatively short distance from the nearest industrial site. Furthermore, we obtain statistical evidence for substantial localized price differentials, which vary according to the size of an industrial site.
Subjects: 
industrial sites
negative externalities
hedonic pricing
JEL: 
O18
R30
R52
Document Type: 
Working Paper

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