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Lead Pipes, Prescriptive Policy and Property Values

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  • Adam Theising

    (University of Wisconsin-Madison)

Abstract

Several recent incidences of severe waterborne lead exposure have public authorities and communities across the US rethinking their strategies to address aging water infrastructure. One common question: who should pay for updates? This paper provides evidence of positive property value capitalization effects following remediation of private lead service lines in Madison, WI. Using a 16-year panel of property transactions data and a universal and prescriptive policy change, I identify an average post-replacement price effect on the order of 3–4% of a property’s value. This implies a more than 75% average return on public and private remediation costs, suggesting homeowners strongly value the benefits of lead reduction in publicly supplied drinking water.

Suggested Citation

  • Adam Theising, 2019. "Lead Pipes, Prescriptive Policy and Property Values," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1355-1382, November.
    • Handle: RePEc:kap:enreec:v:74:y:2019:i:3:d:10.1007_s10640-019-00372-5
    DOI: 10.1007/s10640-019-00372-5
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    1. Leanne Fawkes & Garett Sansom, 2021. "Preliminary Study of Lead-Contaminated Drinking Water in Public Parks—An Assessment of Equity and Exposure Risks in Two Texas Communities," IJERPH, MDPI, vol. 18(12), pages 1-8, June.

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