Estimation of Perceived Risk and Its Effect on Property Values

McCluskey, Jill J.; Rausser, Gordon C.

doi:10.2307/3146979

Cited by 77 publications

(39 citation statements)

References 35 publications

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“…Similar results are reported from other studies (e.g. [3][4][5]). Using a different approach, namely conjoint analysis, Alberini et al [6] investigated the tradeoffs people of four cities in Italy with severely contaminated sites were prepared to make between income and mortality risk reductions delivered by contaminated site remediation programs.…”

Section: Introductionsupporting

confidence: 82%

Emerging value of brownfields regeneration

Damigos¹,

Kaliampakos²

2012

Int. J. SDP

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Nowadays, it is widely recognized that brownfi elds revitalization has the potential to promote sustainable growth especially in urban areas. Nevertheless, given that state and local authorities operate within an increasingly tight fi scal environment, brownfi elds become often of low priority, unless there exist signifi cant human health and ecosystem threats, and remain degraded and underutilized. In order to confront this situation, it is vital for the responsible authorities to justify the necessity of redevelopment projects in 'hard', that is monetary terms. Toward this direction, not only economic but also social and environmental benefi ts should be monetized by means of market and non-market valuation methods. The paper presents two case studies, the redevelopment of a former metallurgical complex to a Technological and Cultural Park and the potential reuse of the former Athens International Airport as a Metropolitan Park, as a means of highlighting the emerging value of brownfi elds regeneration. The results indicate that both projects, when examined from a social point of view, create an economic value and contribute signifi cantly toward sustainable development.

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Section: Introductionsupporting

confidence: 82%

Emerging value of brownfields regeneration

Damigos¹,

Kaliampakos²

2012

Int. J. SDP

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“…These beliefs are updated as a result of realizations of the stochastic process. Whilst some posit Bayesian updating of beliefs (for example Viscusi 1985;Smith and Johnson 1988;McCluskey and Rausser 2001), there is a considerable and growing body of evidence that suggests individuals use heuristic tools in forming and updating beliefs (for example Kahneman 1971, 1974;Tversky 1972, 1973;Grether 1980;Charness and Levin 2005;Rabin and Vayanos 2009). The use of these heuristic tools can result in individuals overweighing salient experiences-such as recent experiences or very good or bad experiences-in forming and updating beliefs.…”

Section: Introductionmentioning

confidence: 99%

A field experiment on the impact of weather shocks and insurance on risky investment

Hill

Viceisza

2011

Exp Econ

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We conduct a framed field experiment in rural Ethiopia to test the seminal hypothesis that insurance provision induces farmers to take greater, yet profitable, risks. Farmers participated in a game protocol in which they were asked to make a simple decision: whether or not to purchase fertilizer and if so, how many bags. The return to fertilizer was dependent on a stochastic weather draw made in each round of the game. In later rounds a random selection of farmers made this decision in the presence of a stylized weather-index insurance contract. Insurance was found to have some positive effect on fertilizer purchases. Purchases were also found to depend on the realization of the weather in the previous round. We explore the mechanisms of this relationship and find that it may be the result of both changes in wealth weather brings about, and changes in perceptions of the costs and benefits to fertilizer purchases.

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“…Perhaps more relevant to the current analysis are those studies focused on Locally Undesirable Land Uses (or LULUs), including landfills, hazardous waste sites, and incinerators. 6 For example, Kohlhase (1991), Kiel (1995, McCluskey and Rausser (2001), and Smith and Desvousges (1986) all estimate the impact of hazardous waste sites on residential property values and typically find that home values are significantly reduced by proximity to such disposal sites. Similar results emerge in studying the impact of incinerator sites (Kiel and McClain 1995a,b) and landfills (Thayer, Albers, and Rahmatian 1992;Reichert, Small, and Mohanty 1992).…”

Section: Literature Reviewmentioning

confidence: 99%

Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values

Herriges¹,

Secchi²,

Babcock³

2005

Land Economics

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To better understand the magnitude of the effects of livestock feeding operations on residential property values, we constructed a new dataset that merges data on home sales with data on the location and size of livestock feeding operations in five rural counties of Iowa. We estimated a hedonic model to explain variations in residential sales price with standard house attributes, such as number of bedrooms and square feet of living space, as well as the effects of distance and density of livestock feeding operation. We find that livestock operations have an overall statistically significant effect on property values. Predicted negative effects are largest for properties that are downwind and close to livestock operations. In addition, feeding operations that are moderate in size have more impact than do large-scale operations, most likely reflecting age, type, and management practices of the moderate-sized operations. The limited size of the estimated effects suggest that common sense rules-such as not locating feeding operations close to and upwind of residences-combined with modest compensatory payments could help rural residences co-exist with modern feeding operations. AbstractTo better understand the magnitude of the effects of livestock feeding operations onresidential property values, we constructed a new dataset that merges data on home sales with data on the location and size of livestock feeding operations in five rural counties of Iowa. We estimated a hedonic model to explain variations in residential sales price with standard house attributes, such as number of bedrooms and square feet of living space, as well as the effects of distance and density of livestock feeding operation. We find that livestock operations have an overall statistically significant effect on property values.Predicted negative effects are largest for properties that are downwind and close to livestock operations. In addition, feeding operations that are moderate in size have more impact than do large-scale operations, most likely reflecting age, type, and management practices of the moderate-sized operations. The limited size of the estimated effects suggest that common sense rules-such as not locating feeding operations close to and upwind of residences-combined with modest compensatory payments could help rural residences co-exist with modern feeding operations.

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Estimation of Perceived Risk and Its Effect on Property Values

Cited by 77 publications

References 35 publications

Emerging value of brownfields regeneration

Emerging value of brownfields regeneration

A field experiment on the impact of weather shocks and insurance on risky investment

Living with Hogs in Iowa: The Impact of Livestock Facilities on Rural Residential Property Values

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