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Neighborhood Dynamics And Price Effects Of Superfund Site Clean‐Up

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  • Douglas S. Noonan
  • Douglas J. Krupka
  • Brett M. Baden

Abstract

ABSTRACT Numerous hedonic price analyses estimate price effects associated with hazardous waste site remediation or other environmental variation. This paper estimates a neighborhood transition model to capture the direct price effect from Superfund site clean‐up and the indirect price effects arising from residential sorting and changes in investment in the housing stock following clean‐up. First‐difference models of neighborhood change and a national sample are used. This approach fails to find consistent positive direct price effects. Positive indirect effects, however, may arise through residential sorting and neighborhood investment spurred by remediation. The findings can be sensitive to policy endogeneity and model specification.

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  • Douglas S. Noonan & Douglas J. Krupka & Brett M. Baden, 2007. "Neighborhood Dynamics And Price Effects Of Superfund Site Clean‐Up," Journal of Regional Science, Wiley Blackwell, vol. 47(4), pages 665-692, October.
    • Handle: RePEc:bla:jregsc:v:47:y:2007:i:4:p:665-692
    DOI: 10.1111/j.1467-9787.2007.00525.x
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    1. Michael Greenstone & Justin Gallagher, 2008. "Does Hazardous Waste Matter? Evidence from the Housing Market and the Superfund Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 951-1003.
    2. Kiel, Katherine A. & Williams, Michael, 2007. "The impact of Superfund sites on local property values: Are all sites the same?," Journal of Urban Economics, Elsevier, vol. 61(1), pages 170-192, January.
    3. Hite, Diane & Chern, Wen & Hitzhusen, Fred & Randall, Alan, 2001. "Property-Value Impacts of an Environmental Disamenity: The Case of Landfills," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 185-202, March-May.
    4. Sudip Chattopadhyay & John B. Braden & Arianto Patunru, 2005. "Benefits Of Hazardous Waste Cleanup: New Evidence From Survey‐ And Market‐Based Property Value Approaches," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 357-375, July.
    5. Banzhaf, H. Spencer & Walsh, Randy, 2006. "Do People Vote with Their Feet? An Empirical Test of Environmental Gentrification," RFF Working Paper Series dp-06-10, Resources for the Future.
    6. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
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    Cited by:

    1. Yukio Sadahiro & Yan Wang, 2018. "Configuration of sample points for the reduction of multicollinearity in regression models with distance variables," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 295-317, September.
    2. Douglas S. Noonan, 2008. "Evidence of Environmental Justice: A Critical Perspective on the Practice of EJ Research and Lessons for Policy Design," Social Science Quarterly, Southwestern Social Science Association, vol. 89(5), pages 1153-1174, December.
    3. Rüttenauer, Tobias & Best, Henning, 2020. "Perceived Pollution and Residential Sorting in Germany: Income May Not Sort, But it Helps to Escape," SocArXiv wdu2n, Center for Open Science.
    4. Peter M. Schwarz & Gwendolyn L. Gill & Alex Hanning & Caleb A. Cox, 2017. "Estimating The Effects Of Brownfields And Brownfield Remediation On Property Values In A New South City," Contemporary Economic Policy, Western Economic Association International, vol. 35(1), pages 143-164, January.
    5. Boarnet, Marlon G & Bostic, Raphael & Williams, Danielle & Santiago-Bartolomei, Raul & Rodnyansky, Seva & Eisenlohr, Andy, 2017. "Affordable Housing in Transit-Oriented Developments: Impacts on Driving and Policy Approaches," Institute of Transportation Studies, Working Paper Series qt487994z4, Institute of Transportation Studies, UC Davis.
    6. Gamper-Rabindran, Shanti & Timmins, Christopher, 2013. "Does cleanup of hazardous waste sites raise housing values? Evidence of spatially localized benefits," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 345-360.
    7. Brett Baden & Douglas Noonan & Rama Mohana Turaga, 2007. "Scales of justice: Is there a geographic bias in environmental equity analysis?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(2), pages 163-185.
    8. Taylor, Laura O. & Phaneuf, Daniel J. & Liu, Xiangping, 2016. "Disentangling Property Value Impacts of Environmental Contamination from Locally Undesirable Land Uses: Implications for Measuring Post-Cleanup Stigma," CEnREP Working Papers 264975, North Carolina State University, Department of Agricultural and Resource Economics.
    9. Walsh, Patrick & Mui, Preston, 2017. "Contaminated sites and information in hedonic models: An analysis of a NJ property disclosure law," Resource and Energy Economics, Elsevier, vol. 50(C), pages 1-14.
    10. Justin Ross & Michael Farmer & Clifford Lipscomb, 2011. "Inconsistency in Welfare Inferences from Distance Variables in Hedonic Regressions," The Journal of Real Estate Finance and Economics, Springer, vol. 43(3), pages 385-400, October.
    11. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Empowerment Zones, neighborhood change and owner-occupied housing," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 386-396, July.
    12. Krupka, Douglas J. & Noonan, Douglas S., 2009. "Neighborhood Dynamics and the Housing Price Effects of Spatially Targeted Economic Development Policy," IZA Discussion Papers 4308, Institute of Labor Economics (IZA).
    13. Recai Aydin & Barton A. Smith, 2008. "Evidence of the Dual Nature of Property Value Recovery Following Environmental Remediation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(4), pages 777-812, December.
    14. Jie Zhuang & Jeffrey G. Cox & Minwoong Chung & Joseph A. Hamm & Adam Zwickle & Brad L. Upham, 2019. "Risk, Stigma, Trustworthiness, and Citizen Participation—A Multifaceted Analysis of Media Coverage of Dioxin Contamination in Midland, Michigan," IJERPH, MDPI, vol. 16(21), pages 1-15, October.
    15. Phaneuf, Daniel J. & Liu, Xiangping, 2016. "Disentangling property value impacts of environmental contamination from locally undesirable land uses: Implications for measuring post-cleanup stigmaAuthor-Name: Taylor, Laura O," Journal of Urban Economics, Elsevier, vol. 93(C), pages 85-98.
    16. Ralph Mastromonaco, 2014. "Hazardous Waste Hits Hollywood: Superfund and Housing Prices in Los Angeles," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 207-230, October.

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