The Value of Avoiding a Lulu: Hazardous Waste Disposal Sites
Smith, V. K., & Desvousges, W. (1986). The Value of Avoiding a Lulu: Hazardous Waste Disposal Sites. Review of Economics and Statistics, 68(2), 293-299.
This paper develops and estimates a demand model to describe a household's demand for distance from a landfill with hazardous wastes. This model provides one basis for gauging the intensity of a household's desire to avoid living near this type of facility. Using the conceptual framework of a hedonic property value model to provide the basis for demand for distance questions, a survey in suburban Boston elicited this information from 609 households. The demand estimates imply that the average household would realize a consumer surplus between $330 to $495 annually for each mile between its residence and a landfill containing hazardous waste