The Property Value Impacts of Groundwater Contamination: Agricultural Runoff and Private Wells

Dennis Guignet, Rachel Northcutt and Patrick Walsh

No 201505, NCEE Working Paper Series from National Center for Environmental Economics, U.S. Environmental Protection Agency

Abstract: There are few studies examining the impacts of groundwater quality on residential property values. Using a unique dataset of groundwater well tests, we link residential transactions to home-specific contamination levels and undertake a hedonic analysis of homes in Lake County, Florida; where groundwater pollution concerns stem primarily from agricultural runoff. We find that testing and contamination yield a 2% to 6% depreciation, an effect that diminishes after the situation is resolved. Focusing specifically on nitrogen-based contamination, we find prices decline mainly at concentrations above the regulatory health standard, suggesting up to a 15% deprecation at levels twice the standard.

Keywords: drinking water; groundwater; hedonic; nitrate; potable water; property value; water quality (search for similar items in EconPapers)
JEL-codes: Q51 Q53 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2015-11, Revised 2015-11
New Economics Papers: this item is included in nep-agr, nep-env and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nev:wpaper:wp201505

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