Property values in a low populated area when dual noxious facilities are present

This paper examines how the presence of dual, disparate environmental disamenities located near each other impact property values in a semi-rural area. A heavy metals manufacturing facility and a rubber-compounding factory operate two and one half miles apart in a small community. The heavy metals manufacturing facility uses low-level depleted uranium in its production. The level of production is small and the production process does not emit visible air pollution or odors that can be easily identified. Thus, if the surrounding community negatively perceives a potential risk, it is not through the channels of sight or smell. The rubber-compounding factory emits foul odors and some visible air pollution. Thus, its negative externalities and potential risks are easily perceptible. Using the hedonic price technique, this paper examines the impact of the use of a non-perceptible hazardous material in the production of a good on housing prices in a community when another more visible, noxious facility is present. The results show that noticeable disamenities are capitalized into housing values, while non-visible ones are not.