The Impact of Brownfields on Residential Property Values in Cincinnati, Ohio: A Spatial Hedonic Approach
AbstractThis paper empirically assesses the impact brownfield sites have on market values of single-family residential properties. Using three different hedonic model specifications, namely Ordinary Least Squares, Spatial Autoregressive, and Spatial Error Model, this study shows that properties located less than 1,000 feet from a brownfield site experience a significant depreciation in property values. As expected, spatial dependence among real estate property values is present meaning that the two spatial hedonic model specifications are superior to the Ordinary Least Squares specification. The study contributes to the relevant real estate and urban economics literature by determining the negative impact brownfield sites have on the value of single-family residential properties in our study region in Cincinnati, by explicitly accounting for the phenomenon of spatial dependence in the dependent variable, and by addressing the declining influence of brownfield sites on property values in a nonlinear relationship.
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Bibliographic InfoPaper provided by HUI Research in its series HUI Working Papers with number 85.
Length: 32 pages
Date of creation: 24 Apr 2013
Date of revision:
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brownfield site; property values; hedonic regression; spatial modelling;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
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