IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v82y2006i4p529-541.html
   My bibliography  Save this article

Environmental Hazards and Residential Property Values: Evidence from a Major Pipeline Event

Author

Listed:
  • Julia L. Hansen
  • Earl D. Benson
  • Daniel A. Hagen

Abstract

This study uses a hedonic price model to estimate the effect of proximity to a major fuel pipeline on housing prices, both before and after a high-profile accident. Using data for Bellingham, Washington, the site of a 1999 rupture and explosion, we find no significant effect of proximity to the pipeline prior to the accident. Following the accident, we find a substantial price effect; however, the effect decays rapidly with distance from the pipeline and also diminishes over time. Results suggest that for this type of environmental hazard, an adverse event leads to an increase in perceived risk.

Suggested Citation

  • Julia L. Hansen & Earl D. Benson & Daniel A. Hagen, 2006. "Environmental Hazards and Residential Property Values: Evidence from a Major Pipeline Event," Land Economics, University of Wisconsin Press, vol. 82(4), pages 529-541.
    • Handle: RePEc:uwp:landec:v:82:y:2006:i:4:p:529-541
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/82/4/529
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Farber, Stephen, 1998. "Undesirable facilities and property values: a summary of empirical studies," Ecological Economics, Elsevier, vol. 24(1), pages 1-14, January.
    2. Carroll, Thomas M. & Clauretie, Terrence M. & Jensen, Jeff & Waddoups, Margaret, 1996. "The Economic Impact of a Transient Hazard on Property Values: The 1988 PEPCON Explosion in Henderson, Nevada," The Journal of Real Estate Finance and Economics, Springer, vol. 13(2), pages 143-167, September.
    3. Benson, Earl D & Hansen, Julia L. & Schwartz Jr., Arthur & Smersh, Greg T., 1998. "Pricing Residential Amenities: The Value of a View," The Journal of Real Estate Finance and Economics, Springer, vol. 16(1), pages 55-73, January.
    4. Jon P. Nelson, 1981. "Three Mile Island and Residential Property Values: Empirical Analysis and Policy Implications," Land Economics, University of Wisconsin Press, vol. 57(3), pages 363-372.
    5. Katherine A. Kiel, 1995. "Measuring the Impact of the Discovery and Cleaning of Identified Hazardous Waste Sites on House Values," Land Economics, University of Wisconsin Press, vol. 71(4), pages 428-435.
    6. Michaels, R. Gregory & Smith, V. Kerry, 1990. "Market segmentation and valuing amenities with hedonic models: The case of hazardous waste sites," Journal of Urban Economics, Elsevier, vol. 28(2), pages 223-242, September.
    7. Okmyung Biny & Stephen Polasky, 2004. "Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd," Land Economics, University of Wisconsin Press, vol. 80(4).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hellman, Kelly L. & Walsh, Patrick J., 2017. "Property Values and the Risk from an Oil Spill: the Effects of the Deepwater Horizon Oil Spill in Hillsborough County," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259117, Agricultural and Applied Economics Association.
    2. Katherine Kiel, 2006. "Environmental Contamination and House Values," Working Papers 0601, College of the Holy Cross, Department of Economics.
    3. John Braden & Xia Feng & DooHwan Won, 2011. "Waste Sites and Property Values: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 175-201, October.
    4. Xu, Minhong & Xu, Yilan, 2017. "Environmental Hazards and Mortgage Credit Risk: Evidence from Texas Pipeline Incidents," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258019, Agricultural and Applied Economics Association.
    5. Gawande, Kishore & Jenkins-Smith, Hank, 2001. "Nuclear Waste Transport and Residential Property Values: Estimating the Effects of Perceived Risks," Journal of Environmental Economics and Management, Elsevier, vol. 42(2), pages 207-233, September.
    6. Minhong Xu & Yilan Xu, 2020. "Environmental Hazards and Mortgage Credit Risk: Evidence from Texas Pipeline Incidents," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(4), pages 1096-1135, December.
    7. Gawande, Kishore & Jenkins-Smith, Hank & Yuan, May, 2013. "The long-run impact of nuclear waste shipments on the property market: Evidence from a quasi-experiment," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 56-73.
    8. Daniel T. Winkler & Bruce L. Gordon, 2013. "The Effect of the BP Oil Spill on Volume and Selling Prices of Oceanfront Condominiums," Land Economics, University of Wisconsin Press, vol. 89(4), pages 614-631.
    9. Cameron, Trudy Ann, 2006. "Directional heterogeneity in distance profiles in hedonic property value models," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 26-45, January.
    10. Donggyu Yi & Hyundo Choi, 2020. "Housing Market Response to New Flood Risk Information and the Impact on Poor Tenant," The Journal of Real Estate Finance and Economics, Springer, vol. 61(1), pages 55-79, June.
    11. 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.
    12. John Chamblee & Carolyn Dehring & Craig Depken & Joseph Nicholson, 2015. "Water Contamination, Land Prices, and the Statute of Repose," The Journal of Real Estate Finance and Economics, Springer, vol. 51(3), pages 398-414, October.
    13. Ida Ferrara & Stephen McComb & Paul Missios, 2007. "Local Willingness-to-Pay Estimates for the Remediation of the Sydney Tar Ponds in Nova Scotia," Canadian Public Policy, University of Toronto Press, vol. 33(4), pages 441-458, December.
    14. Dennis Guignet, 2013. "What Do Property Values Really Tell Us? A Hedonic Study of Underground Storage Tanks," Land Economics, University of Wisconsin Press, vol. 89(2), pages 211-226.
    15. Poor, P. Joan & Pessagno, Keri L. & Paul, Robert W., 2007. "Exploring the hedonic value of ambient water quality: A local watershed-based study," Ecological Economics, Elsevier, vol. 60(4), pages 797-806, February.
    16. Francesca Nocca & Martina Bosone & Manuel Orabona, 2024. "Multicriteria Evaluation Framework for Industrial Heritage Adaptive Reuse: The Role of the ‘Intrinsic Value’," Land, MDPI, vol. 13(8), pages 1-26, August.
    17. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    18. O. Ashton Morgan & Stuart E. Hamilton, 2009. "Disentangling Access and View Amenities in Access-restricted Coastal Residential Communities," Working Papers 09-10, Department of Economics, Appalachian State University.
    19. McCluskey, Jill & Rausser, Gordon C., 2000. "Hazardous waste sites and housing appreciation rates," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt0z9156qx, Department of Agricultural & Resource Economics, UC Berkeley.
    20. Guoying Deng & Manuel A. Hernandez & Shu Xu, 2020. "When Power Plants Leave Town: Environmental Quality and the Housing Market in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(4), pages 751-780, December.

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:82:y:2006:i:4:p:529-541. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.