Property-value impacts of an environmental disamenity: The case of landfills

The purpose of this article is to quantify the property-value impacts of a change in environmental quality by using the hedonic price model. In partic ular, we focus on the impact of the presence of landfills on nearby residen tial real estate prices. We combine elements of an urban location choice an d hedonic pricing model to estimate the effects of the presence of multiple environmental disamenities on residential real estate prices. We explicitl y account for temporal effects by including housing transactions in areas w ith both open and closed landfills and control for information effects. In addition, we treat property taxes and prices as being simultaneously determ ined. Our analysis suggests that closing landfills will not necessarily mit igate property-value impacts.