Who Cares about Environmental Stigmas and Does it Matter? A Latent Segmentation Analysis of Stated Preferences for Real Estate

Posted: 23 Jul 2007

See all articles by Arianto A. Patunru

Arianto A. Patunru

University of Indonesia (UI) - Faculty of Economics and Business

John B. Braden

University of Illinois at Urbana, Champaign - Department of Agricultural and Consumer Economics

Sudip Chattopadhyay

San Francisco State University - Department of Economics

Abstract

This article uses latent segmentation analysis to estimate the benefits of contaminant cleanup in Waukegan Harbor, Illinois. Survey responses to attitudinal and perception questions provide significant information about the existence of distinct preference groups. By comparison, the predictive usefulness of demographic covariates is unclear. The expected aggregate willingness-to-pay of Waukegan homeowners for full cleanup is approximately equivalent to a 20% increase in the market value of homes. The aggregate estimate is little affected by the identification of preference clusters.

Suggested Citation

Patunru, Arianto A. and Braden, John B. and Chattopadhyay, Sudip, Who Cares about Environmental Stigmas and Does it Matter? A Latent Segmentation Analysis of Stated Preferences for Real Estate. American Journal of Agricultural Economics, Vol. 89, No. 3, pp. 712-726, August 2007. Available at SSRN: https://ssrn.com/abstract=1002137 or http://dx.doi.org/10.1111/j.1467-8276.2007.00988.x

Arianto A. Patunru (Contact Author)

University of Indonesia (UI) - Faculty of Economics and Business ( email )

Kampus Baru
Depok, West Java 16424
Indonesia

HOME PAGE: http://www.patunru.org/

John B. Braden

University of Illinois at Urbana, Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States

Sudip Chattopadhyay

San Francisco State University - Department of Economics ( email )

San Francisco, CA
United States

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