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Valuing the risk attached with living close to a hazardous waste site : the case of the BT Kemi scandal in Teckomatorp

<p>In this thesis I estimate a monetary value of the risk attached to living near a hazardous waste</p><p>site in the town of Teckomatorp. This site is the result of hundreds of rusty leaking barrels of</p><p>toxins being buried in the ground by the company BT Kemi in the 1970’s. Ever since then the</p><p>site has been remediated in several steps and is still contaminated today. For estimating the</p><p>perceived risk of living near this site I use a hedonic price model (HP) which is a form of a</p><p>revealed preference approach. In a HP model the price of a market good is a function of</p><p>different utility-bearing characteristics and the estimated parameters can be used to calculate</p><p>the implicit prices of these characteristics. In this case I use a data set from the National</p><p>Swedish Institute for Building Research (IBF) and regress property price on a number of</p><p>housing characteristics. I compare an estimated town-effect for Teckomatorp with the</p><p>estimates for two control towns: Billeberga and Anderslöv. I can confirm my hypothesis that,</p><p>after controlling for housing characteristics, there is a negative effect on prices of property in</p><p>Teckomatorp. I find that property prices are on average 46878 SEK lower in Teckomatorp</p><p>than in the two control towns.</p>

Identiferoai:union.ndltd.org:UPSALLA/oai:DiVA.org:uu-6408
Date January 2006
CreatorsSvensson, Kristina
PublisherUppsala University, Department of Economics, Uppsala : Nationalekonomiska institutionen
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, text

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