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The value of a healthy home: Lead paint remediation and housing values

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  • Billings, Stephen B.
  • Schnepel, Kevin T.

Abstract

The presence of lead paint significantly impairs cognitive and behavioral development, yet little is known about the value to households of avoiding this residence-specific environmental health risk. In this paper, we estimate the benefits of lead-paint remediation on housing prices. Using data on all homes that applied to a HUD-funded program in Charlotte, North Carolina, we adopt a difference-in-differences estimator that compares values among remediated properties with those for which an inspection does not identify a lead paint hazard. Results indicate large returns for public and private investment in remediation with each $1 spent on lead remediation generating $2.60 in benefits as well as a reduction in residential turnover.

Suggested Citation

  • Billings, Stephen B. & Schnepel, Kevin T., 2017. "The value of a healthy home: Lead paint remediation and housing values," Journal of Public Economics, Elsevier, vol. 153(C), pages 69-81.
    • Handle: RePEc:eee:pubeco:v:153:y:2017:i:c:p:69-81
    DOI: 10.1016/j.jpubeco.2017.07.006
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    2. Deiana, Claudio & Giua, Ludovica, 2023. "This site is closed! The effect of decommissioning mining waste facilities on mortality in the long run," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    3. Künn, Steffen & Palacios, Juan, 2023. "Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program," IZA Discussion Papers 15986, Institute of Labor Economics (IZA).
    4. Steffen Künn & Juan Palacios, 2023. "Health Implications of Building Retrofits: Evidence from a Population-Wide Weatherization Program," SOEPpapers on Multidisciplinary Panel Data Research 1186, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Alex Hollingsworth & Ivan Rudik, 2021. "The Effect of Leaded Gasoline on Elderly Mortality: Evidence from Regulatory Exemptions," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 345-373, August.
    6. Marcus, Michelle & Mueller, Rosie, 2024. "Unregulated contaminants in drinking water: Evidence from PFAS and housing prices," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    7. Hembre, Erik & Collins, J. Michael & Wylde, Samuel, 2024. "A rising tide lifts all homes? Housing consumption trends for low-income households since the 1980s," Journal of Public Economics, Elsevier, vol. 233(C).
    8. Bishop, Kelly C. & Kuminoff, Nicolai V. & Mathes, Sophie M. & Murphy, Alvin D., 2024. "The marginal cost of mortality risk reduction: Evidence from housing markets," Journal of Urban Economics, Elsevier, vol. 139(C).
    9. Adam Theising, 2019. "Lead Pipes, Prescriptive Policy and Property Values," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1355-1382, November.
    10. Lindgren, Samuel, 2021. "A sound environment: health effects of traffic noise mitigation," Working Papers 2021:10, Swedish National Road & Transport Research Institute (VTI).
    11. Syed Hasan & Odmaa Narantungalag, & Martin Berka, 2022. "No pain, no gain? Mining pollution and morbidity," Discussion Papers 2203, School of Economics and Finance, Massey University, New Zealand.
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    13. Ortega, Francesc & Taṣpınar, Süleyman, 2018. "Rising sea levels and sinking property values: Hurricane Sandy and New York’s housing market," Journal of Urban Economics, Elsevier, vol. 106(C), pages 81-100.

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    More about this item

    Keywords

    Lead paint exposure; Lead hazard remediation; Value of environmental health risk; Urban environmental health;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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