The Benefits of Visibility Improvement: New Evidence from the Los Angeles Metropolitan Area

Posted: 9 Apr 2002

See all articles by Kurt J. Beron

Kurt J. Beron

University of Texas at Dallas - Department of Economics & Finance; National Bureau of Economic Research (NBER)

James Murdoch

University of Texas at Dallas - School of Economic, Political and Policy Sciences

Mark Thayer

San Diego State University - Department of Economics

Abstract

This paper examines the impact of a specific aspect of air quality - visibility, or the ability to clearly see distant objects - on housing values. Our analysis if based on a data set constructed by matching residential housing sales data from the Los Angeles Metropolitan Area for the period 1980 through 1995 with visibility and other air pollution data and other characteristics. We find that visibility differences are capitalized into housing values, producing a measurable hedonic price gradient. The time series design facilitates an estimate of the demand for visibility that we use to calculate the benefits of changes in visual range.

Keywords: visibility, hedonic prices, environmental valuation

Suggested Citation

Beron, Kurt J. and Murdoch, James and Thayer, Mark, The Benefits of Visibility Improvement: New Evidence from the Los Angeles Metropolitan Area. Available at SSRN: https://ssrn.com/abstract=304068

Kurt J. Beron (Contact Author)

University of Texas at Dallas - Department of Economics & Finance ( email )

Richardson, TX 75083
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

James Murdoch

University of Texas at Dallas - School of Economic, Political and Policy Sciences ( email )

P.O. Box 830688, GR 31
Richardson, TX 75083
United States

Mark Thayer

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States

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