Abstract
It is well known that production activities are often the cause of ecosystem disservices. Such disservices can have serious effects on urban real estate values. But how much is the contraction that the market values of housing suffer due to the polluting emissions produced by a medium-sized foundry? And how large is the urban area within which buildings are depreciated? With this research we intend to give an answer. To this aim, with specific regard to urban apartments free from contractual constraints, the use of multiple regression analysis makes it possible to obtain a function that explains the real estate value through multiple variables, one of which is representative of the ecosystem disservice. The study reveals that the urban area that suffers from the negative effects of polluting industrial activities on property prices can be extensive. On the other hand, the contractions of real estate values can even reach 43%. These results, for the first time expressed in quantitative terms, must direct towards urban planning interventions, and more generally of economic policy, aimed at minimizing the environmental impacts of production activities. This is not only for the essential obligations to protect environment and human health, but also in relation to the direct economic implications of the decrease in the value of real estate.
Highlights
«The Ecosystemic Goods and Services are the benefits that the population has obtained, directly or indirectly, from ecosystem functions» [1]
Novelties concern: the selected variables, which include the distance from ecosystem disservice; the estimate of the implicit marginal prices, i.e., the marginal contribution to the total price for each characteristic; the estimate of the contraction that the market values of the houses suffer due to polluting emissions produced; the delimitation of a spatial limit beyond which the presence of a polluting plant does not generate immediately perceptible environmental effects and does not cause reductions in property values
With reference to the urban real estate market, multiple regression analysis models allow the interpretation of the price generation mechanisms
Summary
«The Ecosystemic Goods and Services are the benefits that the population has obtained, directly or indirectly, from ecosystem functions» [1]. These are all the goods that derive from ecosystems and that man uses to satisfy his needs This category includes: food, deriving from organized systems such as agriculture, breeding and waterculture, and from wild sources; water, a support service for the development of life; timber, used as a building material as well as fuel; fibers in general, both those obtained from agricultural systems and those produced by animals; the fuels; etc.; 2. If on the one hand it has been shown that ecosystem services and disservices generate significant financial effects on human activities, on the other hand these effects have not yet been sufficiently investigated in quantitative terms This is true with reference to urban real estate assets [8,9]. Answering these questions is an objective of primary importance, with respect to which a contribution this research intends to provide
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