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Factors Influencing Differences between Survey and Market-based Environmental Value Measures

Department of Agricultural Economics and Rural Sociology, Auburn University, 809B Comer Hall, Auburn, Alabama, 36830, United States, hitedia{at}auburn.edu

A unique US database combining survey and housing data is used to obtain household-level stated and market-based willingness-to-pay (WTP) measures to avoid living near landfills. Systematic differences are found between individuals with zero and positive stated WTP, suggesting that a double hurdle model be used. Positive stated WTP is related to whether a respondent donated to an environmental organisation or lives downwind from an open landfill, while zero WTP is associated with age, high education levels or high ranking of house location. WTP difference (survey—hedonic) depends positively on respondents' consideration of a landfill prior to home purchase, toxic air release levels, relative valuation of neighbourhood and environmental characteristics and donations to environmental organisations; WTP difference is highly negatively associated with age and high levels of education.

Urban Studies, Vol. 46, No. 1, 117-138 (2009)
DOI: 10.1177/0042098008098639


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