Title: The devaluation of property due to the perception of health risk in polluted industrial cities

Authors: Carmelo Maria Torre; Pasquale Balena; Claudia Ceppi

Addresses: DICAR Polytechnic of Bari, Via Orabona, 4 70125 Bari, Italy ' DICATECh Polytechnic of Bari, Via Orabona, 4-70125 Bari, Italy ' DICATECh Polytechnic of Bari, Via Orabona, 4-70125 Bari, Italy

Abstract: The environmental damage due to industrial pollution activities to produce the adaptations in the behaviour of economic agents involved: if there is a decrease of environmental quality, it may lead to a negative change in real estate market values, identifying the quantities and the prices of traded goods. Starting from these considerations, a situation analysis was carried out about three municipalities of Apulia Region (Brindisi, Bari and Taranto), which are affected by major environmental industrial detractors. In particular the case of Taranto has been studied and the value of the property of the district 'Tamburi' and other neighbourhoods adjacent to the industrial area has been quantified. If they had not been affected by the same pole, thereby, arriving at an estimate of the decrease of the real estate value by the use of damage estimate of the externality on real estate market.

Keywords: market comparison; environmental risks; perceived risk; externality; geoprocessing; property devaluation; health risks; urban pollution; industrial cities; environmental pollution; real estate market values; Italy.

DOI: 10.1504/IJBIDM.2014.062885

International Journal of Business Intelligence and Data Mining, 2014 Vol.9 No.1, pp.74 - 90

Available online: 24 Jun 2014 *

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