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The effect of voluntary brownfields programs on nearby property values: Evidence from Illinois

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  • Linn, Joshua

Abstract

Brownfields are properties whose redevelopment is hampered by known or suspected contamination and by concerns about associated liability. Because failing to redevelop brownfields may negatively affect welfare and the environment, a number of states have created voluntary programs to reduce liability risks and encourage redevelopment of brownfields. For clean or remediated properties, the state certifies that owners of such sites are not subject to federal or state liability under certain conditions. Certification could increase nearby property values because of decreased contamination risk and amenities associated with redeveloping the brownfield. This paper focuses on the Site Remediation Program in Illinois, and estimates the effect of brownfields certification on nearby property values. Employing several strategies to account for unobserved and time-varying variables that may be correlated with certification, I find that the entry and certification of a brownfield 0.25miles away raises the value of a property by about 1% compared to an otherwise identical property.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 78 (2013)
Issue (Month): C ()
Pages: 1-18

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Handle: RePEc:eee:juecon:v:78:y:2013:i:c:p:1-18

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Hedonic regression; Contamination; Voluntary cleanup programs;

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Cited by:
  1. Kousky, Carolyn & Walls, Margaret, 2013. "Floodplain Conservation as a Flood Mitigation Strategy: Examining Costs and Benefits," Discussion Papers dp-13-22-rev, Resources For the Future.
  2. Muehlenbachs, Lucija & Spiller, Elisheba & Timmins, Christopher, . "The Housing Market Impacts of Shale Gas Development," Discussion Papers dp-13-39-rev, Resources For the Future.
  3. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2014. "The Housing Market Impacts of Shale Gas Development," NBER Working Papers 19796, National Bureau of Economic Research, Inc.
  4. Kevin Haninger & Lala Ma & Christopher Timmins, 2014. "The Value of Brownfield Remediation," NBER Working Papers 20296, National Bureau of Economic Research, Inc.

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