Estimating the Marginal Effect of Pits and Quarries on Rural Residential Property Values in Wellington County, Ontario: a Hedonic Approach
Estimating the Marginal Effect of Pits and Quarries on Rural Residential Property Values in Wellington County, Ontario: A Hedonic Approach by Alison Grant A Thesis presented to The University of Guelph In partial fulfillment of requirements for the degree of Master of Science in Program Food, Agricultural and Resource Economics Guelph, Ontario, Canada © Alison Grant, June, 2017 ABSTRACT Estimating the Marginal Effect of Pits and Quarries on Rural Residential Property Values in Wellington County, Ontario: A Hedonic Approach Alison Grant Advisor: Dr. Brady Deaton University of Guelph, 2017 Committee: Dr. Jessica Cao Dr. Richard Vyn “Aggregate” material – i.e., sand, gravel, clay, and bedrock – are extracted from pits and quarries throughout Ontario. Aggregates are the number one resource extracted (by value) and used by Ontarians, and approximately $1.2 billion of aggregate material was extracted in Ontario in the last year. While aggregate is a valued resource, the extraction of aggregate is often identified as a negative externality. Similar to other environmental disamenities mentioned in the literature – such as shale gas exploration sites, wind turbines and landfills – residents near aggregate extraction identify a host of events that can be categorized as negative externalities. Residential concerns include noise and visual disamenities, as well as environmental concerns, such as diminished water quality. In this study, I assess the potential impacts of aggregate sites. First, I briefly introduce the perceived impacts of aggregate sites by quoting residents’ concerns through newspaper articles and lobby group websites. I then utilize the hedonic model to test these claims made by residents: namely, the negative effect on property values.
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