What are the Effects of Contamination Risks on Commercial and Industrial Properties? Evidence from Baltimore, Maryland
AbstractUsing the hedonic pricing approach, we investigate how the information released on public registries of contaminated and potentially contaminated sites affects nearby commercial and industrial properties in Baltimore, Maryland. We find that commercial and industrial properties are virtually unaffected by proximity to a site with a history of contamination. Knowing that the site is no longer considered contaminated does not have a rebound effect on property prices either. We also find that urban economic development policies, such as Empowerment Zones and Enterprise Zones, have little effect on property values. In sum, brownfield properties in Baltimore are not particularly attractive investments for developers, and there is little potential for self-sustaining cleanup based on appropriate fiscal incentives, such as Tax Increment Financing. It is doubtful that “one size fits all” measures to encourage the cleanup of contaminated sites can be successful in this context.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2005.111.
Date of creation: Sep 2005
Date of revision:
Contaminated sites registries; Distance to contaminated sites; Hedonic pricing model; Brownfields;
Other versions of this item:
- Alberto Longo & Anna Alberini, 2006. "What are the effects of contamination risks on commercial and industrial properties? evidence from Baltimore, Maryland," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(5), pages 713-737.
- 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
- R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-10 (All new papers)
- NEP-ENV-2006-02-12 (Environmental Economics)
- NEP-URE-2006-01-24 (Urban & Real Estate Economics)
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