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Do superfund sites affect local property values? Evidence from a spatial hedonic approach

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  • Kim, GwanSeon
  • Schieffer, Jack
  • Mark, Tyler

Abstract

Seven different Superfund sites located within or just outside the county border of Jefferson County, Kentucky are investigated. Our finding shows that the use of a traditional hedonic pricing model will result in inefficient estimates compared to a spatial error hedonic model. Considering two different phases of the cleanup process, we find that the median housing value is lower for houses near deleted Superfund sites but is not significantly affected by sites classified as final. Another consideration is the implications of multiple Superfund sites, and findings indicate that multiple Superfund sites do not significantly impact housing values.

Suggested Citation

  • Kim, GwanSeon & Schieffer, Jack & Mark, Tyler, 2020. "Do superfund sites affect local property values? Evidence from a spatial hedonic approach," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 15-28.
    • Handle: RePEc:eee:ecanpo:v:67:y:2020:i:c:p:15-28
    DOI: 10.1016/j.eap.2020.05.007
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    More about this item

    Keywords

    Hedonic price model; Spatial error model; Superfund site;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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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