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Do Stormwater Basins Generate co-Benefits? Evidence from Baltimore County, Maryland

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  • Irwin, Nicholas B.
  • Klaiber, H. Allen
  • Irwin, Elena G.

Abstract

An often-cited advantage of green infrastructure projects is the potential for “co-benefits” generated from its natural features, which depend on the generation of positive house price capitalization. Using housing transactions data and exploiting variation in placement and design, we examine the capitalization of stormwater retention basins, a common green infrastructure project in suburban housing developments. Results show adjacency causes decreases in housing prices between 13 and 14% for the average home. Additionally this negative effect exacerbates with basin age. Rather than providing co-benefits, we find that stormwater basins generate a cost for proximate households.

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  • Irwin, Nicholas B. & Klaiber, H. Allen & Irwin, Elena G., 2017. "Do Stormwater Basins Generate co-Benefits? Evidence from Baltimore County, Maryland," Ecological Economics, Elsevier, vol. 141(C), pages 202-212.
    • Handle: RePEc:eee:ecolec:v:141:y:2017:i:c:p:202-212
    DOI: 10.1016/j.ecolecon.2017.05.030
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    More about this item

    Keywords

    Stormwater basins; Capitalization; Hedonics; Green infrastructure;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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