| dc.description.abstract | Abstract
Tests conducted by the Atomic Energy Council in August 1992 revealed that 1,659 houses in Taiwan are contaminated with radiation. Apart from negatively affecting both the wellbeing and the financial circumstances of residents, these houses may also impact on neighboring houses. This study explored whether radiation-contaminated houses affect the prices of neighboring houses, and if so the extent to which distance from the radioactive house in question affects housing prices. We sourced transaction data from real estate market reports on Taipei City and New Taipei City during 1993-1996. Using geographic information systems (GIS), we calculated the distance of specific houses from radiation-contaminated properties, then employed the hedonic price method to study price differences.
Using the semi-logarithmic linear and nonlinear (Box-Cox) hedonic pricing methods, we developed models for gradient distance intervals and straight-line distance intervals. Houses in Taipei City situated more than 1,000 m from radiation-contaminated homes and houses in New Taipei City located more than 800 m apart were eliminated as samples. The conclusions are as follows:
Although Model 1 (gradient distance interval) in Taipei had comparatively lower goodness of fit (39.67%), all other semi-logarithmic linear models showed model fitness of approximately 60% or higher, indicating relatively high explanatory capacity for housing prices. The Box-Cox transformation coefficient θ was below 1% for empirical results in both Taipei City and New Taipei city, which is statistically significantly different from 0. Therefore, the two types of model both have relatively high explanatory capacity.
The hedonic pricing model for housing produced results that were in line with our expectations. The floor area and type of house, specifically townhouse or villa, were shown to be significantly positively correlated with house price. Houses that had been listed on the market for a considerable length of time and properties in apartment complexes were shown to fetch lower prices. All other independent housing variables have a significant influence on house price.
Based on studying houses in Taipei City and New Taipei City situated less than 10 m from radiation-contaminated houses, a positive relationship was demonstrated between increased distance from the radioactive property and housing price, indicating higher marginal price. Model 1 shows that the marginal price calculated by the non-linear (Box-Cox) model is relatively lower, while in Model 2 the marginal price of the non-linear (Box-Cox) model is lower than that of the semi-logarithmic linear model. Once distance was increased to 600-800 m, however, the influence of radiation-contaminated homes on real estate prices was gradually reduced. | en_US |