Price Effects of Landfills on House Values

Abstract

There is debate on the extent to which landfills impact on nearby single-family homes. This article applies an empirical model to estimate the price effects of one Minnesota landfill on the value of 708 nearby homes during the 1980s. Empirical results indicate that the landfill adversely affected home values in the range of 12 percent at the landfill boundary and 6 percent at about one mile. Beyond about 2-2.5 miles adverse effects are negligible. The findings have important implications for the siting of new landfills near residential areas and in areas within the path of future development.

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