Fred Hitzhusen

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 particular, we focus on the impact of the presence of landfills on nearby residential real estate prices. We combine elements of an urban location choice and hedonic pricing model to estimate the effects of the presence of multiple environmental disamenities on residential real estate prices. We explicitly account for temporal effects by including housing transactions in areas with both open and closed landfills and control for information effects. In addition, we treat property taxes and prices as being simultaneously determined. Our analysis suggests that closing landfills will not necessarily mitigate property-value impacts.

The economics of erosion control in a subtropical Watershed: a Dominican case

Many forest conservation projects seek to preserve biodiversity by protecting habitats from exploitation or degradation. Although such efforts are often motivated by global concerns, habitat protection also yields domestic benefits. Some of these are ...

Land degradation and sustainability of agricultural growth: some economic concepts and evidence from selected developing countries

Abstract In many developing countries, a large proportion of the population resides and works in rural areas. Agriculture is the dominant sector in rural areas and has the greatest concentration of poverty: landless workers, small tenant farmers, and small farm owners. Thus, any development strategy that is directed towards increasing employment and alleviating a countrys hunger must concentrate on sustainable agricultural growth. Historically, economic development, in most countries, has been based on exploitation of natural resources, particularly land resources — in large part because these resources have been undervalued by private markets and political systems. Soil erosion and land degradation have been serious worldwide. Due to reasons such as high population pressure on land, and limited fossil energy supplies, land degradation is more serious in the developing world. Empirical studies show that soil erosion and degradation of agricultural land not only decrease land productivity but that they can also result in major downstream or off-site damage (e.g. reduction of hydroelectric production) which may be several times that of on-site damage. An earlier analysis identified the factors that determine the agricultural production growth rate in 28 developing countries. This study involved statistical estimation of an aggregate agricultural growth function based on cross-country data. The overall results showed that price distortions in the economy and land degradation had statistically significant negative impacts while the change in arable and permanent land was positively related to the growth of agricultural production and food production in 28 developing countries from 1971 to 1980. These results emphasize the importance of ‘getting prices right’ and implementation of sustainable land and water management practices if future growth in food and agricultural output is to be realized and sustained in developing countries.

Economics of Electrical Energy from Crop Residue Combustion with High Sulfur Coal

The economic feasibility of utilizing corn stover as a coal supplement in small to medium-sized, coal-burning steam-electric plants appears promising, particularly when the low sulfur emission value of corn stover is considered. Two case steam-electric power plants located in Ames, Iowa, and Peru, Indiana, are analyzed utilizing three harvest and collection systems and alternative values for several key technical and economic parameters. These results combined with data from a sample of steam-electric plants in the north central United States are used to assess the potential for this renewable low sulfur energy source.

Property Value Impacts of an Environmental Disamenity

The purpose of this paper is to quantify the property value impacts of a change in environmental quality by using the hedonic price model. In particular, we focus on the impact of the presence of landfills on nearby residential real estate prices. We combine elements of an urban location choice and hedonic pricing model to estimate the effects of the presence of multiple environmental disamenities on residential real estate prices. We explicitly account for temporal effects by including housing transactions in areas with both open and closed landfills, and control for information effects. In addition, we treat property taxes and prices as being simultaneously determined. Our analysis suggests that closing landfills will not necessarily mitigate property value impacts.

Economic Analysis of Poorly Sited Septic Systems: A Hedonic Pricing Approach

Proper design and quality of soil play an important role in the functioning of soil-based septic systems. Septic systems with traditional leach fields are not suitable for treatment of domestic wastewater in Ohio due to shallow soils. Along with other adverse health effects, untreated or partially treated wastewater could lead to a loss of property valuation. The assessed value of 549 randomly selected properties in Licking County, Ohio was analysed using hedonic pricing method to isolate the effect of poor site selection on the value of the properties. Results indicate that properties sited on soils that are deemed optimal for wastewater treatment are valued 6.2% to 6.8% higher than those sited on sub-optimal soils. The results from this study can help the property owners in making better private decisions regarding installation of septic systems, but can also guide policy decisions that affect public health and common waters.

CONTINGENT VALUATION STUDY ON WILLINGNESS-TO-PAY FOR SUSTAINABLE FOREST PRODUCTS

This research study investigates the market and non-market benefits and costs of adopting a forest resources policy aimed at environmentally responsible purchasing at a large university. I use benefit-cost analysis and contingent valuation methods to determine the populations willingness-to-pay (WTP) for environmentally responsible forest products. Econometric analysis reveals that past WTP and belief that the forest resources policy will improve the environment positively affect WTP, while position as a staff member decreases WTP. This methodology can be used for other products that have non-market values like cafeteria compost and by other large purchasing entities such as corporations and government agencies.

Learning Sustainable Development with a Farm Enterprise and Its Community

ABSTRACT Model social processes useful in facilitating sustainable development are advanced from our team experiences with a case study. The processes are: learn how to learn as a team and community, use a model process that reveals shared interests and leverageable points, and then facilitate local stakeholders in developmental action. The case provided the team the opportunity to learn to describe and comprehend the case agroecosystem as a whole–natural elements and social relationships. Dialogue among stakeholders created an awareness and clarity of leverageable issues. Team engagement with local stakeholders facilitated efforts to organize, integrate information and motivate developmental action. Case issue lessons were: farmers need information to transition to more sustainable forms of agriculture, institutional mechanisms are needed to support the development of new markets, consumers need information on the benefits of using agriculural products that enhance their environment, and the public needs to share responsibility for food safety and health rather than generating more governmental regulation. This sustainable development model process is presented to inform other farm-community change efforts.

Willingness to Pay for LID Environmental Benefits

This paper provides a general overview of the basic economic notions that underlie the benefits of low impact development (LID): willingness-to-pay (WTP) and willingness-to-accept compensation (WTA). It also summarizes the specific extra- and non-market estimation methods utilized by environmental and natural resource economists to estimate WTP and WTA values more holistically. Several examples of LID environmental economic benefits that have been estimated by OSU environmental economists are presented, selected methods are then applied to a specific case involving a proposed greenway on the Mill Creek River, and conclusions are drawn. Finally, implications for policy are suggested for a broad range of LID projects. This paper is intended as an introduction to and overview of non-market valuation and its relevance to LID, not as a comprehensive treatment of this large and expanding field.

Dovring, Folke. Farming for Fuel: The Political Economy of Energy Sources in The United States. New York: Praeger Publishers, 1988, 152 pp.,

Four Problems--One Soution The Petroleum Age Replacing Petroleum: The Many Choices Gasohol--A Blind Alley Biomass Production as Land-Use Diversification Biomass Production as Soil Conservation Methanol Raw Materials: Possible Supplies and Costs Converting Biomass to Methanol Using Methanol in Vehicles The Road Not Taken