Faculty Publications

An Analysis Of The Impact Of Swine Cafos On The Value Of Nearby Houses

Document Type

Article

Keywords

Concentric circles, Externalities, Hedonic analysis, House values, LULUs, Maximum likelihood, Prevailing winds, Selection bias, Spatial correlation, Swine CAFOs

Journal/Book/Conference Title

Agricultural Economics

Volume

39

Issue

3

First Page

365

Last Page

372

Abstract

The impact of 39 swine confined or concentrated animal feeding operations (CAFOs) in Black Hawk County, Iowa on 5,822 house sales is explored by introducing a new variable that more accurately captures the effects of prevailing winds, exploring potential adverse effects within concentric circles around each CAFO, managing selection bias, and incorporating spatial correlation into the error term of the empirical model. Large adverse impacts suffered by houses that are within 3 miles and directly downwind from a CAFO are found. Beyond 3 miles, CAFOs have a generally decreasing adverse impact on house prices as distance to the CAFO increases. © 2008 International Association of Agricultural Economists.

Department

Department of Economics

Department

Department of Mathematics

Original Publication Date

11-1-2008

DOI of published version

10.1111/j.1574-0862.2008.00339.x

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