Perceived Environmental Risk, Media and Residential Sales Prices

Julia Freybote () and Eric Fruits ()
Additional contact information
Julia Freybote: Portland State University
Eric Fruits: Portland State University

Journal of Real Estate Research, 2015, vol. 37, issue 2, 217-244

Abstract: We investigate the relationship of homebuyer risk perception and sales prices over different development stages of an environmental hazard (underground natural gas transmission pipeline) characterized by no sensory impact on homes, no accidents and a relatively low actual risk of fatal explosions. We also investigate the moderating effect of media coverage of unrelated fatal pipeline explosions on this relationship. Using a hedonic pricing model, we find that 1) media coverage moderates the relationship of pipeline proximity (perceived risk) and sales prices in the pipeline construction phase and 2) higher perceived risk reduces sales prices once the pipeline is in operation.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol37n02/9842-03.217_244.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:37:n:2:2015:p:217-244

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().