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The Effect of Dioxin Contamination and Remediation on Property Values

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  • Adam Zwickle

    (School of Criminal Justice, Michigan State University, East Lansing, MI 48824, USA
    Environmental Science and Policy Program, Michigan State University, East Lansing, MI 48824, USA
    Department of Community Sustainability, Michigan State University, East Lansing, MI 48824, USA)

  • Jeffrey G. Cox

    (Department of Communication, Michigan State University, East Lansing, Michigan, USA)

  • Jie Zhuang

    (Department of Communication Studies, 2800 South University Drive, Texas Christian University, Fort Worth, TX 76109, USA)

  • Joseph A. Hamm

    (School of Criminal Justice, Michigan State University, East Lansing, MI 48824, USA
    Environmental Science and Policy Program, Michigan State University, East Lansing, MI 48824, USA)

  • Brad L. Upham

    (Department of Pediatrics and Human Development, 1355 Bogue St, B240 Life Sciences Building, Michigan State University, East Lansing, MI 48824, USA)

  • Minwoong Chung

    (Department of Communication, Michigan State University, East Lansing, Michigan, USA)

  • Shannon Cruz

    (Communication Arts & Sciences, Pennsylvania State University, University Park, PA 16802, USA)

  • James W. Dearing

    (Department of Communication, Michigan State University, East Lansing, Michigan, USA)

Abstract

Loss of property value is a major concern in communities faced with the toxic byproducts of industrial practices. Even after site remediation, stigma may persist and negatively affect market values of residential properties. To study the effects of contamination and of remediation on property values in Midland, Michigan, where dioxins have been released into the environment through the incineration of contaminated waste and the discharge of contaminated water for many years, records of assessed value were obtained for 229 homes within the same neighborhood for the previous 18 years. A multilevel, longitudinal analysis was conducted to determine if there was a relationship between level of dioxin and assessed value after controlling for housing characteristics. Remediated and un-remediated properties saw increases in value at a similar rate over time. However, a property’s level of dioxin was found to have a small, significant, and negative relationship with assessed value, and this negative effect was present regardless if a home had been remediated or not. These results suggest that while environmental remediation may be effective at removing the contamination, its economic effects may persist for a longer period of time.

Suggested Citation

  • Adam Zwickle & Jeffrey G. Cox & Jie Zhuang & Joseph A. Hamm & Brad L. Upham & Minwoong Chung & Shannon Cruz & James W. Dearing, 2019. "The Effect of Dioxin Contamination and Remediation on Property Values," IJERPH, MDPI, vol. 16(20), pages 1-9, October.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:20:p:3900-:d:276506
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    References listed on IDEAS

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    1. Larry Dale & James C. Murdoch & Mark A. Thayer & Paul A. Waddell, 1999. "Do Property Values Rebound from Environmental Stigmas? Evidence from Dallas," Land Economics, University of Wisconsin Press, vol. 75(2), pages 311-326.
    2. Robert A. Simons & Jesse D. Saginor, 2006. "A Meta-Analysis of the Effect of Environmental Contamination and Positive Amenities on Residential Real Estate Values," Journal of Real Estate Research, American Real Estate Society, vol. 28(1), pages 71-104.
    3. Kohlhase, Janet E., 1991. "The impact of toxic waste sites on housing values," Journal of Urban Economics, Elsevier, vol. 30(1), pages 1-26, July.
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    Cited by:

    1. Shannon M. Cruz, 2019. "Themes Across New Directions in Community Engagement," IJERPH, MDPI, vol. 16(19), pages 1-13, October.

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