Specifying the Price Impacts of Utility Easements

21 Pages Posted: 24 Apr 2017

See all articles by M. Kevin McGee

M. Kevin McGee

University of Wisconsin - Oshkosh

Date Written: January 30, 2017

Abstract

This paper proposes a nonlinear econometric specification for estimating the hedonic land value impact of dis-amenities that affect only a portion of a property’s value. This specification allows for the possibility that the price-acreage relationship is nonlinear, and assumes that the dis-amenity’s price impact is some product of overall land value. It is based on an assumed data-generating process in which sellers and buyers adjust their asking and bid prices by adjusting what they perceive to be the net property acreage – i.e., the effective usable acreage, after accounting for any use loss associated with the dis-amenity.

Keywords: Real Estate, Electricity, Hedonic Prices

JEL Classification: C51, L94, R31, R32

Suggested Citation

McGee, M. Kevin, Specifying the Price Impacts of Utility Easements (January 30, 2017). Available at SSRN: https://ssrn.com/abstract=2957234 or http://dx.doi.org/10.2139/ssrn.2957234

M. Kevin McGee (Contact Author)

University of Wisconsin - Oshkosh ( email )

800 Algoma Blvd
Oshkosh, WI WI 54901
United States

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