INDUSTRIAL-LOCATION AND RESIDENTIAL DISAMENITY - A CASE-STUDY OF THE CHEMICAL-INDUSTRY IN CASTLEFORD, ENGLAND

Despite their location near residential populations, limited disamenit y property rights have been granted to chemical firms in accordance wi th Government legislation in most developed countries. These include r ights to produce limited harmless odours, noise and visual intrusion, and, as long as restrictions to the property rights are not breached, no compensation will be payable. With these considerations in mind it is essential that the magnitude of these residential amenities are eva luated before granting the relevant property rights for the local envi ronment. This study presents a relatively novel approach to monetary e stimation of such disamenity using local knowledge of the housing mark et. Monetary estimates are provided for the cost of residential disame nities received and the relative importance of the different types of externality associated with permitting chemical works to be located ne ar to residential areas. The results suggest that although such proper ty-right decisions can be efficient in economic terms, local residents may still have to shoulder sizeable wealth reductions. Even for a lon g-time established chemical industry, the results suggest the main cau ses of disamenity for local residents to be from their perceived healt h risk rather than visual or distance amenity. (C) 1998 Academic Press .