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The Role of Contamination in Central City Industrial Decline

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  • Marie Howland

    (University of Maryland)

Abstract

This study examines the role that land contamination plays in hindering central city redevelopment. The author tracked all sales and selling prices and the presence of contamination 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. Out of 144 parcels that sold over the past decade, positive, market-clearing prices have been found for 45 parcels with either confirmed or historical-reasons-to-suspect contamination. Interviews with owners and brokers of parcels on the market for 2 years or more and analysis of the data indicate that sites with above-market asking price; that are small and oddshaped; with inadequate road access for modern trucks; that have outdated water, sewer, and telecommunications connections; and with incompatible surrounding land uses are the most likely to remain unsold after 2 years.

Suggested Citation

  • Marie Howland, 2004. "The Role of Contamination in Central City Industrial Decline," Economic Development Quarterly, , vol. 18(3), pages 207-219, August.
    • Handle: RePEc:sae:ecdequ:v:18:y:2004:i:3:p:207-219
    DOI: 10.1177/0891242404266013
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    References listed on IDEAS

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    1. Kristen R. Yount, 1997. "The Organizational Contexts of Decisions to Invest in Environmentally Risky Urban Properties," Journal of Economic Issues, Taylor & Francis Journals, vol. 31(2), pages 367-374, June.
    2. Christopher De Sousa, 2000. "Brownfield Redevelopment versus Greenfield Development: A Private Sector Perspective on the Costs and Risks Associated with Brownfield Redevelopment in the Greater Toronto Area," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(6), pages 831-853.
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    Cited by:

    1. Guignet, Dennis B. & Martinez-Cruz, Adan L., 2018. "The impacts of underground petroleum releases on a homeowner's decision to sell: A difference-in-differences approach," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 11-24.
    2. Paolo Rosato & Anna Alberini & Valentina Zanatta & Margaretha Breil, 2010. "Redeveloping derelict and underused historic city areas: evidence from a survey of real estate developers," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(2), pages 257-281.
    3. Anna Alberini, 2007. "Determinants And Effects On Property Values Of Participation In Voluntary Cleanup Programs: The Case Of Colorado," Contemporary Economic Policy, Western Economic Association International, vol. 25(3), pages 415-432, July.
    4. Guignet, Dennis & Alberini, Anna, 2008. "Voluntary Cleanups and Redevelopment Potential: Lessons from Baltimore, Maryland," Sustainability Indicators and Environmental Valuation Working Papers 46548, Fondazione Eni Enrico Mattei (FEEM).
    5. Paolo Rosato & Anna Alberini & Valentina Zanatta & Margaretha Breil, 2009. "Redeveloping Derelict and Underused Historical City Areas: Evidence from a Survey�of�Real�Estate�Developers," Working Papers 2009_02, Department of Economics, University of Venice "Ca' Foscari".
    6. Alberini, Anna, 2006. "Determinants and Effects on Property Values of Participation in Voluntary Cleanup Programs: The Case of Colorado," Sustainability Indicators and Environmental Valuation Working Papers 12215, Fondazione Eni Enrico Mattei (FEEM).
    7. Anna Alberini & Alberto Longo, 2006. "The Effects of Contamination and Cleanup on Commercial and Industrial Properties: A Hedonic Pricing Model of Maryland and Baltimore City," ERSA conference papers ersa06p413, European Regional Science Association.

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    Keywords

    brownfields; industrial redevelopment;

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