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Local Willingness-to-Pay Estimates for the Remediation of the Sydney Tar Ponds in Nova Scotia

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  • Paul Missios

    (Department of Economics, Ryerson University, Toronto, Canada)

  • Ida Ferrara

    (Department of Economics, York University, Toronto, Canada)

  • Stephen McComb

Abstract

The Sydney Tar Ponds and Coke Ovens site in Nova Scotia, Canada, is among the most toxic hazardous waste sites in North America. This study presents hedonic estimates of the willingness-to-pay for remediation of the site using housing sales data from urban Sydney. Negative impacts are estimated with a maximum likelihood spatial autoregressive model of property values. Premiums on homes farther from the site are found to be substantial, and, when aggregated into a community willingness-to-pay measure ($169.2 million), cover a large proportion of the estimated remediation costs.

Suggested Citation

  • Paul Missios & Ida Ferrara & Stephen McComb, 2009. "Local Willingness-to-Pay Estimates for the Remediation of the Sydney Tar Ponds in Nova Scotia," Working Papers 009, Ryerson University, Department of Economics.
    • Handle: RePEc:rye:wpaper:wp009
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    More about this item

    Keywords

    Hedonic model; property values; spatial regression; toxic waste; hazardous site; Canada;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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