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The Impact of Contamination on the Industrial Land Market


  • Marie Howland


This study examines the impact of contamination on land prices and sales in an industrial district in Baltimore, Maryland. We tracked the sales and selling price of land, known to be contaminated, known to be clean, and suspected of contamination because of its historical uses in one industrial area of about 5,580 acres in southwest Baltimore. The results indicate that after the mid-1990s, contaminated parcels have been selling, and the market has adjusted to contamination by lowering prices. Using an OLS model of land prices, we find parcels adjacent to a contaminated parcel - either known or suspected - sold at a 35% discount, and parcels known to be contaminated or had an historical reason-to-suspect of contamination sold at a 55% discount.

Suggested Citation

  • Marie Howland, 2011. "The Impact of Contamination on the Industrial Land Market," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2011(3), pages 29-47.
  • Handle: RePEc:fan:scresc:v:html10.3280/scre2011-003003

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    More about this item


    Politica territoriale; aree dismesse; utilizzo di terreni industriali;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs


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