Impact of public water supply unreliability on residential property prices in Marion County, West Virginia

Fahad Alzahrani and Alan R. Collins

Agricultural and Resource Economics Review, 2022, vol. 51, issue 1, 105-129

Abstract: Water supply unreliability in many public water systems stems from aging infrastructure. We measure unreliability by the issuance of boil water notices (BWNs) within one year prior to single-family residential sale observations. Using a spatial quantile regression framework on transactions between 2012 and 2017, we find statistically significant, negative relationships between BWNs and residential properties. The estimated impacts of unreliability on residential housing prices, however, are not uniform across the distribution of prices. Specifically, we find that BWNs have a larger impact on medium- to low-priced houses (at or below the 60 percent quantile) compared with high-priced houses. An aggregate marginal willingness-to-pay value of $4.2 million was computed for a one-day reduction in annual BWN throughout Marion County.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:cup:agrerw:v:51:y:2022:i:1:p:105-129_6

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