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Residential demand for sediment remediation to restore water quality: Evidence from Milwaukee

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  • Melstrom, Richard T.

Abstract

This paper examines the effect of removing pollutants, mainly polychlorinated biphenyls (PCBs), on home prices in Great Lakes Areas of Concern (AOCs). AOCs are heavily polluted locations identified as priorities for restoration under the Great Lakes Water Quality Agreement (GLWQA) between the United States and Canada. Since the signing of the GLWQA, AOCs have undergone cleanup actions that could encourage local redevelopment and raise nearby property values. This paper focuses on the Milwaukee Estuary AOC and estimates property owner willingness to pay as well as potential differences in willingness to pay for sediment remediation using a sorting model and home sales data before and after cleanup. Results indicate that home prices near the water increased significantly and that remediation did not change pre-existing inequalities generally favoring higher-income, predominantly white households through a process of demographic re-sorting.

Suggested Citation

  • Melstrom, Richard T., 2022. "Residential demand for sediment remediation to restore water quality: Evidence from Milwaukee," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).
    • Handle: RePEc:eee:jeeman:v:116:y:2022:i:c:s0095069622000845
    DOI: 10.1016/j.jeem.2022.102731
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    More about this item

    Keywords

    Property values; Pollution; Polychlorinated biphenyls; PCBs; Environmental policy;
    All these keywords.

    JEL classification:

    • 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
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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