The purpose of this paper is to implement an temporal and spatial analysis of the Environmental Stigma on the land price occurred by marine oil pollution. When the land value is affected by the environmental pollution, it is very complicate how to ref...
The purpose of this paper is to implement an temporal and spatial analysis of the Environmental Stigma on the land price occurred by marine oil pollution. When the land value is affected by the environmental pollution, it is very complicate how to reflect the effect in the price and how much to do in the process of the real estate appraisal. The primary cause is the decline of marketability under the uncertainty.
Theoretical methods of this study are based on the cognitive psychology, judgment and decision-making to analyze what the marine oil pollution affects the land price under the uncertainty. Empirical data, the official land price and the actual transaction price are as follows. The official land price are 1,518 parcels selected each year in seven years from 2006 to 2012. Actual transaction land price are totally 13,772 parcels selected in six years from 2006 to 2011.
Above all, it is necessary to examine whether the marine oil pollution impact on land prices or not in establishing hypotheses. Without the Environmental stigma, it will less necessary to analyze the temporal and spatial impacts.
As a result of testing research hypotheses, Research hypotheses(1, 2, 3) were adopted finally. Research hypothesis 1 was that the land price of subject region would be affected by the marine oil pollution incident. Hypothesis 2 was that the stigma variable would be effective in hedonic price model. Hypothesis 3 was that the sigma variable would have a effect on the spatial change in the subject region price level.
This study is to identify the variate direction and variable force, not to enhance coefficient determination in expert's official land and non expert's actual transaction hedonic pricing model. This study examined the standardized coefficient for distinguishing the cognition difference between expert's the official land price and non expert's actual transaction land price. Research results showed the distinct difference between expert and non-expert in the stigma variable's influence disparity.
The Environmental Stigma disparity between the official land price and transactional one can be explained as follows. First, the official land price is made for the purpose of tax and policy price. That is the reason why it is difficult to know the Environmental Stigma of the official land price comparing the transaction land price. Second, this can easily explain it with J. Diaz(1987, 1990a, 1997)'s research results of the appraiser's behavior. J. Diaz has elicited the opinions of appraisers behavior to make decisions on the basis of certain facts and norms unlike non-expert who are affected by feelings. In other words, valuation decision making is in process of certain rules and ranges in that the Appraisal is a work through judgment.
Especially, there are some limits of value influencing factor to reflect environmental pollution effects of property value, so the influences would be less compelled comparing with non expert' judgments in its ranges and temporal flows in the case of Korea.
In addition, when the environmental pollution effects on land prices, the result of previous researches let us know that the appraisers would process according to the prior valuation data and opinions under the uncertainty(smoothing and anchoring effect).
In the marine oil pollution of the Hebei Spirit incident, damages and indemnification has been the best hot issue. However, dissatisfaction and conflict has grown among the residents for lack of compensation and government-aid. The current status might be realized by environmental stigma as follows from regional land market and price. : H.S.C.(Hebei Spirit Center)'s high rejection to the ask for compensation, the government apathy, the business indifference and so on.