The Addition of Contingent Valuation and Conjoint Analysis to the Required Body of Knowledge for the Estimation of Environmental Damages to Real Property

McLean, David; Mundy, Bill

doi:10.1080/10835547.1998.12091555

Cited by 29 publications

(12 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the results of empirical analysis, limited to the number and type of cases near the polluted site, it is difficult to evaluate the actual impact of pollution remediation upon the price of surrounding real estate with the hedonic price method. In fact, the contingent valuation method (CVM) has used when actual selling data is difficult to acquire [26]. As another study shows that the disadvantage of the distance model is that it is likely to be correct only to the extent that the perceived risk declines continuously with distance from the location, that distance model may misspecify the true relationship and cause biased inferences about the role of the remediation policies and the extent of the rebound [18].…”

Section: Hedonic Price Methodsmentioning

confidence: 99%

“…For this reason, the contingent valuation method is used for the hypothesis of the market situation so as to determine the price consumers are willing to pay (WTP). Whether the elicitation approach uses WTP or willing to accept (WTA) depends on which consumer surplus measure is sought-one dealing with a quantity increase or a quantity decrease [26], or the money or assets are part of their endowment or not [27]. Since our research is about increasing environmental quality and our survey respondents are not confined to the owners of real estate around the contaminated site, we think the correct compensating surplus measure is WTP.…”

Section: Contingent Valuation Method Cvmmentioning

confidence: 99%

See 1 more Smart Citation

A Study on Soil and Groundwater Pollution Remediation of the Surrounding Real Estate Prices and Tax Revenue Impact

et al. 2015

Sustainability

View full text Add to dashboard Cite

To see whether the surrounding real estate price after soil and groundwater pollution remediation will revert to the level before the risk of implicit pollution, this paper uses research methods, such as the hedonic price method and contingent valuation method for analysis. The results of empirical analysis reveal that the hedonic price method will be restricted by trade cases around pollution sites. In view of this, it proposes using the contingent valuation method and consumers' viewpoints for the analysis. Empirical results show that after pollution remediation the respondents are willing to pay an average of $1168 per square meter, which is slightly higher than the current price of $1059 per square meter with an increase of about 10%. Therefore, prices will recover after remediation at least to the level of the surrounding area.

show abstract

Section: Hedonic Price Methodsmentioning

confidence: 99%

Section: Contingent Valuation Method Cvmmentioning

confidence: 99%

A Study on Soil and Groundwater Pollution Remediation of the Surrounding Real Estate Prices and Tax Revenue Impact

et al. 2015

Sustainability

View full text Add to dashboard Cite

show abstract

“…The author concludes that the Australian Valuers are mainly adopting conventional methods of valuation in assessing the value of contaminated land; the methods that allow for more innovation are hardly ever used. McLean and Mundy (1998) cited in Simons and Winson-Geideman (2005) suggest the use of contingent valuation in real estate when buyers may be unaware of the impact of contamination on their property values, thus impacting the reliability of sales data. When the availability of adequate sales data is limited, traditional valuation techniques are unreliable and difficult to use.…”

Section: Approaches To Valuing Oil Spill Contaminated Landmentioning

confidence: 99%

Enhancing Sustainability of the Niger Delta Environment through the Choice of Techniques for Valuing Contaminated Land

Deeyah

Akujuru

2020

Journal of Sustainable Real Estate

View full text Add to dashboard Cite

This paper provides an overview of the professionally accepted factors that should guide the choice of techniques for valuing contaminated land affected by oil spills to ensure environmental sustainability in the Niger Delta. We review ways to improve current valuation approaches and the various factors estate surveyors and Valuers should consider in choosing a technique(s) to adopt. We administer a questionnaire to 60 Estate Surveyors and Valuers in the Niger Delta using purposive sampling to examine the current preferred method. Forty-six questionnaires, representing 76.7% of the total, were validly answered and returned. By applying the current method to the Bodo Oil Spill as a case study, we find that the resultant compensation is hardly adequate, that it discourages recipients from continuing in their occupation prior to the contamination, aggravates the poor community's relationship between oil exploration companies and their host communities, and reinforces the perception that oil activities cause most problems in the Niger Delta. We conclude that the continued use of predetermined compensation rates endangers the environment and results in unsustainable practices that will sooner or later destroy the entire Niger Delta ecosystem. We recommend the adoption of methods suitable to the subject contaminated property and the incorporation of the impact duration as key factors in the choice of techniques for a sustainable contaminated land valuation.

show abstract

“…Po Èyho Ènen, 1998a; Miettinen and Ha Èma Èla Èinen, 1996). In these methods the weighting of the preferences becomes a question of elicitation (Ruokolainen and Tempelmans Plat, 1998;Po Èyho Ènen, 1998a; see also McLean and Mundy, 1998).…”

Section: Flexible Regression and Advanced Spatial Modelling Approachesmentioning

confidence: 99%

Residential property value and locational externalities

Kauko¹

2003

Journal of Property Investment &Amp; Finance

View full text Add to dashboard Cite

It is well-known from the literature that locational externalities influence the price formation of residential property. This effect is usually studied empirically with the hedonic price models, by including various neighbourhood and proximity variables in the model. These regression based techniques have, however, been criticised for a number of reasons. The arguments pertain partly to technical issues such as model flexibility, functional discontinuity and nonlinearity, and data quality, and partly to more fundamental problems regarding the nature of the value formation process. The criticism has attracted experiments with new modelling approaches, each of which adds something substantial to the hedonic approach. The study comprises two parts: it first highlights the rationale behind each broad approach composed of specific modelling techniques currently available, and then demonstrates an improvement of the demand side analysis by applying the analytic hierarchy process. This method enables quantification of qualitative expert judgements, and may lead to conclusions that go beyond the purely economic value framework.

show abstract

The Addition of Contingent Valuation and Conjoint Analysis to the Required Body of Knowledge for the Estimation of Environmental Damages to Real Property

Cited by 29 publications

References 2 publications

A Study on Soil and Groundwater Pollution Remediation of the Surrounding Real Estate Prices and Tax Revenue Impact

A Study on Soil and Groundwater Pollution Remediation of the Surrounding Real Estate Prices and Tax Revenue Impact

Enhancing Sustainability of the Niger Delta Environment through the Choice of Techniques for Valuing Contaminated Land

Residential property value and locational externalities

Contact Info

Product

Resources

About