The external cost of asbestos in the housing market |
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| Authors: | Ermanno Affuso J. Reid Cummings Huubinh Le |
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| Affiliation: | Department of Economics and Finance, Mitchell College of Business,University of South Alabama, Mobile, Alabama, USA |
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| Abstract: | This study uses a Generalized Method of Moments spatial error hedonic model to estimate the potential impact of asbestos on residential property prices. The analysis examines a large sample of 32,403 housing sales occurring between 2008 and 2015 in a fast-growing Coastal Alabama region. Results indicate the presence of asbestos depreciates house values by 13.44%, translating into an external cost of approximately $25,300 per property. |
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| Keywords: | Asbestos housing price impacts spatial error modelling hedonic modelling |
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