Price Effects of Landfills on Different House Value Strata

Abstract

There is little empirical research into the effects of landfills on house prices generally or on different categories of house price. Some studies indicate that landfills impose negative price effects while other studies offer positive effects. Some research suffers from small sample sizes and others from limited interpretability. No research explores whether landfills affect prices of houses differently with respect to different price levels or strata. This study helps close these gaps in empirical work. Using the largest number of house sales near a single landfill yet analyzed, this article shows negative house price effects associated with landfill proximity. It also shows that the price effects fall disproportionately on higher valued homes. The results generate new insights into the policy and planning implications of landfills on urban development patterns.