A Hedonic Analysis of the Impact of LUST Sites on House Prices in Frederick, Baltimore, and Baltimore City Counties
AbstractPetroleum from leaking underground storage tanks (LUSTs) can contaminate local soil, and surface and groundwater. In some cases this can pose health risks to the surrounding population. Focusing on single family home sales from 1996-2007 in three Maryland counties, we use a hedonic house price model to estimate the willingness to pay to live father away from LUST sites. Particular attention is given to how property values are affected by leak and cleanup activity at a LUST site, the severity of contamination, the presence of a primary exposure path (i.e., private groundwater wells), and publicity surrounding a LUST site. The results suggest that although the typical LUST site may not significantly affect nearby property values, more publicized (and more contaminated sites) can impact surrounding home values by more than 10%.
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Bibliographic InfoPaper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 201001.
Length: 58 pages
Date of creation: Jan 2010
Date of revision: Jan 2010
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hedonic model; LUST; groundwater contamination; Remediation benefits;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-11 (All new papers)
- NEP-ENV-2010-06-11 (Environmental Economics)
- NEP-URE-2010-06-11 (Urban & Real Estate Economics)
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- Linn, Joshua, 2012. "The Effect of Voluntary Brownfields Programs on Nearby Property Values: Evidence from Illinois," Discussion Papers dp-12-35, Resources For the Future.
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