The Effect of a Large Hog Barn Operation on Residential Sales Prices in Marshall County, KY
Journal of Sustainable Real Estate
In this paper, we examine the economic impact of a tightly clustered complex of hog barns, a type of concentrated animal feeding operation (CAFO) on residential property in a rural area near Benton, Kentucky. The operation creates noxious and offensive odors associated with swine-raising and waste disposal activities. Theory and practice indicate that buyers would avoid purchasing a property believed to be contaminated or subject to effects of unsustainable environmental disamenities. Using hedonic regression analysis, the results show price reductions of 23%-32% for residential properties sold within 1.25 miles of the facility, and much larger losses northeast (downwind) of the facility.
Simons, Robert A.; Seo, Youngme; and Robinson, Spenser, "The Effect of a Large Hog Barn Operation on Residential Sales Prices in Marshall County, KY" (2014). Urban Publications. 0 1 2 3 1267.