Environmental Economics

Benefit of Water Pollution Control on Property Values

This study was undertaken to determine the current state-of-knowledge concerning the measurement of the potential benefit of water pollution control on property values, and to analyze the relationship between water quality parameters and property values at several sites where water pollution has been substantially reduced in recent years. Multiple-regression analysis and an interview technique were employed to study the relationship between residential and recreational property values and water quality components. Study sites were located on San Diego Bay and the Kanawha, Ohio, and Willamette Rivers. It was found that effective pollution abatement on badly polluted water bodies can increase the value of single-family homes situated on waterfront lots by 8 to 25 percent, and that these water quality improvements can affect property values up to 4000 feet away from the water's edge. It was also found that the measurable water quality parameters which have the greatest influence on property values are dissolved oxygen concentration, fecal coliform concentrations, clarity, visual pollutants (trash and debris), toxic chemicals, and pH.

  • Keywords

    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Revealed Preference
    1. Benefits Analysis - Valuation - Revealed Preference - Property Value
    Environmental Media:
    b. Water
    b. Water - Surface
    Dornbusch, D.M.
    Barrager, S.M.
    EPA Project Officer/ Manager:
    Abel, Fred
    Geographic Area:
    California, Ohio, San Diego, Oregon
    Study Purpose:
    Empirical Application
    Inventory Record #: EE-0009
  • Participating Organizations

    Research Organization:

    David M. Dornbusch and CompanyAddress:
    City: San Francisco State: CA ZIP:
    Phone: Fax:
    Funding Organization:
    Environmental Protection AgencyAddress:
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
  • Report Details
    Number of Pages:
    EPA #:
    NTIS #:
    Grant/Contract #:
  • How to Obtain Report

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    Date Linked: 05/28/2009
    Other Ways to Obtain the Report:
    You may be able to obtain this report by contacting the National Technical Information Service (NTIS):
    By phone: 1-800-553-6847 or 703-605-6000;
    By mail: NTIS, Department of Commerce, 5285 Port Royal Rd., Springfield, VA 22161;
    By World Wide Web: [http://www.ntis.gov].
    You will need the following NTIS report #: PB-228590