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Benefits Of Hazardous Waste Cleanup: New Evidence From Survey‐ And Market‐Based Property Value Approaches

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  • SUDIP CHATTOPADHYAY
  • JOHN B. BRADEN
  • ARIANTO PATUNRU

Abstract

This article compares the discrete choice random utility model and the hedonic property value model in estimating the benefits of cleaning up Waukegan Harbor, a Superfund site on the Great Lakes. The study uses survey‐based conjoint choice data on housing preferences and market data on housing transactions. The research finds that the benefit estimates for different levels of cleanup are quite comparable between the models. The estimates compare very well with those of some previous studies. The results of the study suggest that tax increment financing by the local government is a feasible option to fund cleanup.

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  • Sudip Chattopadhyay & John B. Braden & Arianto Patunru, 2005. "Benefits Of Hazardous Waste Cleanup: New Evidence From Survey‐ And Market‐Based Property Value Approaches," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 357-375, July.
    • Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:357-375
    DOI: 10.1093/cep/byi027
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    Cited by:

    1. Kiel, Katherine A. & Williams, Michael, 2007. "The impact of Superfund sites on local property values: Are all sites the same?," Journal of Urban Economics, Elsevier, vol. 61(1), pages 170-192, January.
    2. Hilary Sigman & Sarah Stafford, 2011. "Management of Hazardous Waste and Contaminated Land," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 255-275, October.
    3. Douglas S. Noonan & Douglas J. Krupka & Brett M. Baden, 2007. "Neighborhood Dynamics And Price Effects Of Superfund Site Clean‐Up," Journal of Regional Science, Wiley Blackwell, vol. 47(4), pages 665-692, October.
    4. 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).
    5. Wiktor L. Adamowicz & Klaus Glenk & Jürgen Meyerhoff, 2014. "Choice modelling research in environmental and resource economics," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 27, pages 661-674, Edward Elgar Publishing.
    6. Xiaolin Ren & Arianto A. Patunru & John B. Braden, 2008. "Language‐Related Differences In Environmental Benefits Estimation: Evidence From A Mail Survey," Contemporary Economic Policy, Western Economic Association International, vol. 26(1), pages 13-31, January.
    7. Bill Provencher & Helen Sarakinos & Tanya Meyer, 2008. "Does Small Dam Removal Affect Local Property Values? An Empirical Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 187-197, April.
    8. Takeshima, Hiroyuki & Nagarajan, Latha & Salau, Sheu & Oyekale, Abayomi, 2010. "Nigerian farmers’ preferences on the timing of the purchase of rice, cowpea, and maize seeds:," NSSP working papers 20, International Food Policy Research Institute (IFPRI).
    9. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    10. Anna Alberini & Stefania Tonin & Margherita Turvani, 2009. "The Value of Reducing Cancer Risks at Contaminated Sites: Are More Heavily Exposed People Willing to Pay More?," Working Papers 2009.60, Fondazione Eni Enrico Mattei.
    11. Dennis Guignet, 2013. "What Do Property Values Really Tell Us? A Hedonic Study of Underground Storage Tanks," Land Economics, University of Wisconsin Press, vol. 89(2), pages 211-226.
    12. Cutter, W. Bowman & Franco, Sofia F., 2012. "Do parking requirements significantly increase the area dedicated to parking? A test of the effect of parking requirements values in Los Angeles County," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 901-925.
    13. Robin R. Jenkins & Elizabeth Kopits & David Simpson, 2006. "Measuring the Social Benefits of EPA Land Cleanup and Reuse Programs," NCEE Working Paper Series 200603, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Sep 2006.
    14. Dennis Guignet & Anna Alberini, 2015. "Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the United Kingdom," Risk Analysis, John Wiley & Sons, vol. 35(3), pages 501-517, March.
    15. Chattopadhyay, Sudip, 2009. "The random expenditure function approach to welfare in RUM: The case of hazardous waste clean-up," Resource and Energy Economics, Elsevier, vol. 31(1), pages 58-74, January.
    16. John Braden & Xia Feng & DooHwan Won, 2011. "Waste Sites and Property Values: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 175-201, October.
    17. Anna Alberini & Dennis Guignet, 2010. "Preliminary Stated-Preference Research on the Impact of LUST Sites on Property Values: Focus Group Results," NCEE Working Paper Series 201009, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Aug 2010.
    18. Daniel J. Phaneuf & Laura O. Taylor & John B. Braden, 2013. "Combining Revealed and Stated Preference Data to Estimate Preferences for Residential Amenities: A GMM Approach," Land Economics, University of Wisconsin Press, vol. 89(1), pages 30-52.
    19. Jette Jacobsen & John Boiesen & Bo Thorsen & Niels Strange, 2008. "What’s in a name? The use of quantitative measures versus ‘Iconised’ species when valuing biodiversity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(3), pages 247-263, March.
    20. Guignet, Dennis, 2012. "The impacts of pollution and exposure pathways on home values: A stated preference analysis," Ecological Economics, Elsevier, vol. 82(C), pages 53-63.
    21. Stefania Tonin & Anna Alberini & Margherita Turvani, 2012. "The Value of Reducing Cancer Risks at Contaminated Sites: Are More Knowledgeable People Willing to Pay More?," Risk Analysis, John Wiley & Sons, vol. 32(7), pages 1157-1182, July.
    22. Karen A. Sullivan, 2017. "Brownfields Remediation: Impact on Local Residential Property Tax Revenue," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-20, September.

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