Environmental Economics

An Hedonic Analysis of Property Values and Hazardous Waste Site Cleanup: The Effects of Cleanup over Time

This paper demonstrates that property values can recover through time near hazardous waste sites because changes in perceptions that the site is cleaned up. Although the Operating Industries Inc. landfill is still a dominant visual presence in Monterey Park and Montebello, California, recent property sales data show a marked increase in both sales activity and sales prices compared to when the site was being added to the National Priority List. There is no longer a pronounced signal relating a home's proximity to the site and a lower sales price. In this paper the authors also revise the property value models used previously to estimate welfare losses. The model refinements led to an upward revision in the magnitude of losses sustained throughout the community, losses that the authors estimated as 19% of average sales price. Compared with the losses estimated for the mid-1980s. and after correcting for overall housing price changes in the Los Angeles area, the authors estimate an overall increase in property values in the area closest to the site (within 1.5 miles) at $22 million.

  • Keywords

    Subject:
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Revealed Preference
    1. Benefits Analysis - Valuation - Revealed Preference - Property Value
    Environmental Media:
    c. Land
    c. Land - Superfund/CERCLA
    Authors:
    Hurd, Brian
    Balistreri, Ed
    Schulze, William
    McClelland, Gary
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Monterey Park (CA)
    Study Purpose:
    Empirical Application
    Inventory Record #: EE-0540
  • Participating Organizations

    Research Organization:

    Colorado at Boulder, University of, Center for Economic AnalysisAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Policy, Planning and EvaluationAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    06/01/1998
    Number of Pages:
    25
    Comment:
    Grant/Contract #:
    CR821980
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    Date Linked: 08/29/2017