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What are the Effects of Contamination Risks on Commercial and Industrial Properties? Evidence from Baltimore, Maryland

Author

Listed:
  • Alberto Longo

    (University of Bath)

  • Anna Alberini

    (AREC, University of Maryland and Fondazione Eni Enrico Mattei)

Abstract

Using the hedonic pricing approach, we investigate how the information released on public registries of contaminated and potentially contaminated sites affects nearby commercial and industrial properties in Baltimore, Maryland. We find that commercial and industrial properties are virtually unaffected by proximity to a site with a history of contamination. Knowing that the site is no longer considered contaminated does not have a rebound effect on property prices either. We also find that urban economic development policies, such as Empowerment Zones and Enterprise Zones, have little effect on property values. In sum, brownfield properties in Baltimore are not particularly attractive investments for developers, and there is little potential for self-sustaining cleanup based on appropriate fiscal incentives, such as Tax Increment Financing. It is doubtful that “one size fits all” measures to encourage the cleanup of contaminated sites can be successful in this context.

Suggested Citation

  • Alberto Longo & Anna Alberini, 2005. "What are the Effects of Contamination Risks on Commercial and Industrial Properties? Evidence from Baltimore, Maryland," Working Papers 2005.111, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2005.111
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    References listed on IDEAS

    as
    1. Lovell, Sabrina J. & Lynch, Lori, 2002. "Hedonic Price Analysis Of Easement Payments In Agricultural Land Preservation Programs," Working Papers 28564, University of Maryland, Department of Agricultural and Resource Economics.
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    Cited by:

    1. 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.
    2. 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.
    3. Stefania Tonin & Margherita Turvani, 2011. "Environmental contamination and industrial real estate market: an application of hedonic price method in Italy," ERSA conference papers ersa10p511, European Regional Science Association.
    4. Longo, Alberto & Hutchinson, W. George & Hunter, Ruth F. & Tully, Mark A. & Kee, Frank, 2015. "Demand response to improved walking infrastructure: A study into the economics of walking and health behaviour change," Social Science & Medicine, Elsevier, vol. 143(C), pages 107-116.
    5. Marie Howland, 2007. "Employment Effects of Brownfield Redevelopment What Do We Know from the Literature?," NCEE Working Paper Series 200701, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Jan 2007.
    6. Douglas Noonan & Douglas Krupka, 2010. "Determinants of historic and cultural landmark designation: why we preserve what we preserve," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 34(1), pages 1-26, February.
    7. repec:bla:coecpo:v:35:y:2017:i:1:p:143-164 is not listed on IDEAS

    More about this item

    Keywords

    Contaminated sites registries; Distance to contaminated sites; Hedonic pricing model; Brownfields;

    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
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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