The Impact of WTE Facility on Housing Value

This study makes a contribution to ongoing compensation debates by providing empirical findings whether siting a WTE facility changes the housing value of a given community and what the important attributes are in determining the housing value. To answer these questions this paper examines a WTE facility siting case in Korea employing a Hedonic Pricing Method. The study found that the following variables impact the value of housing: distance to parks, distance to the WTE facility, the number of parking lots per apartment, and total number of floors in the apartment. With regard to the variable Distance to WTE Facility Site, only apartments located within 300m showed a statistically significant relationship. These results support the current government compensation policy that households located within 300m from a WTE facility are eligible to receive fringe benefits including reduction of heating cost, free of charge, and discounted welfare facilities.