Benefits of Hazardous Waste Cleanup: New Evidence From Survey‐ and Market‐based Property Value Approaches

Chattopadhyay, Sudip; Braden, John B.; Patunru, Arianto A.

doi:10.1093/cep/byi027

Cited by 42 publications

(41 citation statements)

References 33 publications

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“…Stated preference approaches allow researchers more opportunities to randomize which households determine the valuations and to value multiple cleanup decisions; however, these studies have generally found values of contaminated site cleanup and VSLs similar to those found in the hedonic studies (Chattopadhyay et al 2005). Studies have also looked for non-price responses as evidence that households value changes at these sites; in particular, households with lower tolerance for risk would move in and the housing stock increase.…”

Section: Measuring the Benefits Of Cleanupmentioning

confidence: 95%

Management of Hazardous Waste and Contaminated Land

Sigman

Stafford

2010

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Regulation of hazardous waste and cleanup of contaminated sites are two major components of modern public policy for environmental protection. We review the literature on these related areas, with emphasis on empirical analyses. Researchers have identified many behavioral responses to regulation of hazardous waste, including changes in the location of economic activity. However, the drivers behind compliance with these costly regulations remain a puzzle, as most research suggests a limited role for conventional enforcement. Increasingly sophisticated research examines the benefits of cleanup of contaminated sites, yet controversy remains about whether the benefits of cleanup in the U.S. exceed its costs. Finally, research focusing on the imposition of legal liability for damages from hazardous waste finds advantages and disadvantages of the U.S. reliance on legal liability to pay for cleanup, as opposed to the government-financed approaches more common in Europe. Terms of use: Documents in EconStor mayAcknowledgements: Prepared for the Annual Review of Resource Economics, vol 3., 2011. We are grateful to Erin Cochran for research assistance.

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Section: Measuring the Benefits Of Cleanupmentioning

confidence: 95%

Management of Hazardous Waste and Contaminated Land

Sigman

Stafford

2010

SSRN Journal

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“…Our approach differs from Earnhart (2001Earnhart ( , 2002, Chattopadhyay et al (2005) and Phaneuf et al (forthcoming) in that i) we do not ask respondents to trade off other house characteristics (e.g., size) and neighborhood characteristics (e.g., school quality), which are held constant across alternatives, and ii) health risks are explicit, rather than implied by a qualitative description of the environmental quality at the site. To further elaborate on ii), we tell people that at home A, for example, the risk of dying from cancer is X in 1000 over 10 years.…”

Section: Background and Literature Reviewmentioning

confidence: 99%

“…Framing SP studies in the context of housing is a natural step towards facilitating comparisons across hedonic and SP methods. Despite this, only a few SP studies have examined the value of environmental amenities (Earnhart, 2001;2002) and disamenities (Jenkins-Smith et al, 2002;Chattopadhyay et al, 2005;Simons and Winson-Geideman, 2005;Phaneuf et al, forthcoming) in this context.…”

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confidence: 99%

Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the UK

Guignet

Alberini

2013

SSRN Journal

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Abstract:Hedonic property value models are often used to place a value on localized amenities and disamenities. In practice, however, results may be affected by (i) omitted variable bias and (ii) whether homebuyers and sellers are aware of, and respond to, the assumed environmental measure. In this paper we undertake an alternative stated preference (SP) approach that eliminates the potential for unobserved confounders and where the measure of environmental quality is explicitly presented to respondents. We examine how homeowners in the United Kingdom and Italy value mortality risk reductions by asking them to choose among hypothetical variants of their home that differ in terms of mortality risks from air pollution and price. To our knowledge this is the first stated preference study examining respondents' willingness to pay for properties using a quantitative and clearly specified measure of health risks.We find that Italian homeowners hold a value of a statistical life (VSL) of about €6.4 million, but UK homeowners tend to hold a much lower VSL (€2.1 million). This may be due to the fact that respondents in the UK do not perceive air pollution where they live to be as threatening, and actually live in cities with relatively low air pollution levels. Exploiting part of our experimental design, we find that Italian homeowners value a reduction in the risk of dying from cancer more than from other causes, but UK respondents do not hold such a premium. We also find that those who face higher baseline risks, due to higher air pollution levels where they live, hold a higher VSL, especially in the UK. In both countries, the VSL is twice as large among individuals who perceive air pollution where they live as relatively high.

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“…For example, Chattopadhyay et al (2005) estimated that the present value of the projected increase in residential property tax revenue from properties nearby to the Waukegan Harbour, a Superfund site on the Great Lakes, ranges from $10.25 million to $16.02 million, and Mihaescu and Vom Hofe (2013) estimated that based on depressed values of properties located within 2,000 feet of 87 brownfields in the City of Cincinnati, the city loses $2,262,569 in annual tax revenue, which presumably could be recovered if those brownfields were remediated.…”

mentioning

confidence: 99%

Brownfields Remediation: Impact on Local Residential Property Tax Revenue

Sullivan

2017

J. Env. Assmt. Pol. Mgmt.

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The US Environmental Protection Agency (EPA) Brownfields Program provides grants to assess and clean up brownfields. There are few studies that estimate tax revenue impacts from cleanup beyond those generated directly from within the remediated site's property lines. This study estimates the increased residential property tax revenue attributable to brownfields cleanup at 48 sites remediated between 2004 and 2011 under the EPA Brownfields Cleanup Grants Program. Findings from a previous study of a 5% to 15.2% property value increase following cleanup at these sites are applied to the assessed values of nearby residential properties along with local tax laws, assessment ratios, and rates to estimate tax revenue gained as a result of brownfields cleanup. The estimated increase in residential property tax revenue for a single tax year from remediating 48 brownfields properties was between $29 million and $97 million (2014 USD).

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Benefits of Hazardous Waste Cleanup: New Evidence From Survey‐ and Market‐based Property Value Approaches

Cited by 42 publications

References 33 publications

Management of Hazardous Waste and Contaminated Land

Management of Hazardous Waste and Contaminated Land

Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the UK

Brownfields Remediation: Impact on Local Residential Property Tax Revenue

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