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

Dennis Guignet, Rachel Northcutt and Patrick Walsh

No 280928, National Center for Environmental Economics-NCEE Working Papers from United States Environmental Protection Agency (EPA)

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: Environmental Economics and Policy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 39
Date: 2015-11
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nceewp:280928

DOI: 10.22004/ag.econ.280928

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