Monetarizing Spillover Effects of Soil and Groundwater Contaminated Sites in Taiwan: How Much More Will People Pay for Housing to Avoid Contamination?

Abstract

This study monetizes spillover effects of soil and groundwater contaminated sites using a quantile hedonic price model for different site types in Taoyuan City in Taiwan, which has 1664 sites, the highest number for any city in Taiwan. The results show that except for those living in the cheapest housing, most residents are willing to pay a higher price to live farther away from contaminated sites. Farmland makes up the largest share of the total contaminated site area and has the highest per square monetary spillover effects in Taoyuan City; remediation of farmland is one of the most urgent missions for the city. Overall, a NIMBY effect is found to exist for soil-and groundwater-contamination in this city.Keywords: geographic information system, housing property, NIMBY effect, quantile hedonic price model, willingness to pay. JEL classification codes: C21, Q24, Q51, Q53.

Evaluation of the Contribution of Farmland Attributes to the Total Benefit from Its Contamination Remediation: Evidence from Taiwan

“…The application of SDM is very limited, and most studies in this regard have been conducted in recent years [43][44][45]. By accounting for the farmland price differentiation, the combination of the SDM and quantile model has resulted in the quantile SDM [36,37,[45][46][47].…”