Undergraduate Honors Theses

Thesis Defended

Spring 2018

Document Type

Thesis

Type of Thesis

Departmental Honors

Department

Economics

First Advisor

Daniel Kaffine

Second Advisor

Martin Boileau

Third Advisor

Terra McKinnish

Fourth Advisor

Steven Vanderheiden

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Abstract

This paper will explore how carcinogenic and noxious pollutants emitted from Toxic Release Sites (TRI) effect housing prices in an urban area of Colorado. This is possible in an empirical model that considers the influence of commercial and industrial properties. My approach addresses an important source of omitted variable bias like issues of sorting and agglomeration by disaggregating pollutant types and sites. I will also compare estimates using a hedonic and repeat sales model. Since I am using the repeat sales model, this can control for bias due to sorting. Results indicate that pollutant coefficients in the repeat sales model are higher than the hedonic coefficients. Overall, the effect of an additional TRI Sites on housing prices within a 1.5 km radius is a 6.3% decrease, an additional noxious pollutant has a 9% decrease, an additional carcinogenic pollutant contributes a 5% decrease, an additional industrial site has a 3% decrease on housing prices.

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