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Do Superfund Sites Affect Local Property Values? Evidence from a Spatial Hedonic Approach

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  • Kim, GwanSeon
  • Schieffer, Jack
  • Mark, Tyler

Abstract

The presence of Superfund sites can have substantial impacts on local property values. Previous studies using the traditional hedonic price model typically fail to account for spatial dependence or autocorrelation in residential housing. Jefferson County, Kentucky is home to Louisville, the largest city in the state. Seven different Superfund sites are located within or just outside the county border. This study shows that the usage of traditional hedonic pricing model leads to inefficient estimates compared to a spatial error hedonic model. This study also investigates sites in two different phases of the cleanup process, suggesting that median housing value is lower with proximity to deleted Superfund sites, but is not significantly affected by sites classified as final. Finally, the implications of multiple Superfund sites located with five miles of the block group centroid are investigated. This study finds that housing value is not significantly affected by additional Superfund sites.

Suggested Citation

  • Kim, GwanSeon & Schieffer, Jack & Mark, Tyler, 2016. "Do Superfund Sites Affect Local Property Values? Evidence from a Spatial Hedonic Approach," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235835, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea16:235835
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    References listed on IDEAS

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    Keywords

    Superfund site; hedonic price model; spatial error model; Environmental Economics and Policy; Land Economics/Use; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy; Q51; Q53; R11;

    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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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