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The Effect of the BP Oil Spill on Volume and Selling Prices of Oceanfront Condominiums

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  • Daniel T. Winkler
  • Bruce L. Gordon

Abstract

This study examines the impact of the British Petroleum oil spill on the volume of sales and prices of condominiums located in several cities along the Gulf Coast of Alabama. The findings show a 50% decline in sales volume from July through December 2010. Based on the contract date, a 7.0% decline in condominium selling prices occurred about six weeks after the oil spill. The decline is 8.8% from August to the capping of the well on September 19, with no statistically significant price decline thereafter.

Suggested Citation

  • 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.
    • Handle: RePEc:uwp:landec:v:89:y:2013:iv:1:p:614-631
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    References listed on IDEAS

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    Cited by:

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    2. Burton, Kati & Maas, Alexander & Lee, Katherine, 2022. "A Case Study in Contamination: Persistent Home Value Losses Associated with the Elk River Spill," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.
    3. Daniel Broxterman & Tingyu Zhou, 2023. "Information Frictions in Real Estate Markets: Recent Evidence and Issues," The Journal of Real Estate Finance and Economics, Springer, vol. 66(2), pages 203-298, February.
    4. Cano-Urbina, Javier & Clapp, Christopher M. & Willardsen, Kevin, 2019. "The effects of the BP Deepwater Horizon oil spill on housing markets," Journal of Housing Economics, Elsevier, vol. 43(C), pages 131-156.
    5. Zach Raff, 2023. "Identifying the regulator’s objective: Does political support matter?," Public Choice, Springer, vol. 194(3), pages 277-295, March.
    6. Boslett, Andrew & Hill, Elaine, 2019. "Shale gas transmission and housing prices," Resource and Energy Economics, Elsevier, vol. 57(C), pages 36-50.
    7. 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.
    8. Choi, Anna & Kim, Pureum & Park, Abraham, 2023. "The effects of air quality on housing prices: Evidence from the Aliso Canyon gas leak," Journal of Housing Economics, Elsevier, vol. 62(C).

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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