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A Study on Soil and Groundwater Pollution Remediation of the Surrounding Real Estate Prices and Tax Revenue Impact

Author

Listed:
  • Chia-Nung Li

    (Department of Natural Resources, Chinese Culture University, Taipei 11114, Taiwan)

  • Chien-Wen Lo

    (Department of Leisure and Recreation Administration, MingChuan University, Room P209-7, Taipei 33348, Taiwan)

  • Wei-Chiang Su

    (Department of Land Economics, National Chengchi University, Room 270603, Taipei 11605, Taiwan)

  • Tsung-Yu Lai

    (Department of Land Economics, National Chengchi University, Room 270603, Taipei 11605, Taiwan)

Abstract

To see whether the surrounding real estate price after soil and groundwater pollution remediation will revert to the level before the risk of implicit pollution, this paper uses research methods, such as the hedonic price method and contingent valuation method for analysis. The results of empirical analysis reveal that the hedonic price method will be restricted by trade cases around pollution sites. In view of this, it proposes using the contingent valuation method and consumers’ viewpoints for the analysis. Empirical results show that after pollution remediation the respondents are willing to pay an average of $1168 per square meter, which is slightly higher than the current price of $1059 per square meter with an increase of about 10%. Therefore, prices will recover after remediation at least to the level of the surrounding area.

Suggested Citation

  • Chia-Nung Li & Chien-Wen Lo & Wei-Chiang Su & Tsung-Yu Lai, 2015. "A Study on Soil and Groundwater Pollution Remediation of the Surrounding Real Estate Prices and Tax Revenue Impact," Sustainability, MDPI, vol. 7(11), pages 1-13, November.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:11:p:14618-14630:d:58172
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    References listed on IDEAS

    as
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    4. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
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    Cited by:

    1. Qinna Zhao & Robert A. Simons & Zhong Fen, 2016. "The Effect of Three Incineration Plants on Residential Property Values in Hangzhou, China," International Real Estate Review, Global Social Science Institute, vol. 19(4), pages 515-546.
    2. Marvin Schütt, 2021. "Systematic Variation in Waste Site Effects on Residential Property Values: A Meta-Regression Analysis and Benefit Transfer," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(3), pages 381-416, March.
    3. Guizhi Wang & Yingxi Song & Jibo Chen & Jun Yu, 2016. "Valuation of Haze Management and Prevention Using the Contingent Valuation Method with the Sure Independence Screening Algorithm," Sustainability, MDPI, vol. 8(4), pages 1-11, March.

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