The impacts of underground petroleum releases on a homeowner's decision to sell: A difference-in-differences approach

Dennis Guignet and Adan Martinez-Cruz

Regional Science and Urban Economics, 2018, vol. 69, issue C, 11-24

Abstract: Actual and perceived damages from environmental disamenities can disrupt a utility maximizing household's otherwise optimal decision of when to sell their home. This study examines this relatively under-investigated topic with an empirical application to petroleum releases from leaking underground storage tanks, like those commonly found at gas stations. The ubiquity and relative homogeneity of this disamenity facilitates a difference-in-differences methodology. The results reveal that the timing of home sales is impacted by leak and cleanup events at these disamenities; leading to both selling sooner and delaying a sale, depending on the event, presence of the primary exposure pathway, and the quality of the home. The implications of these results are discussed.

Keywords: Housing market; Property transaction; Discrete time duration model; Underground storage tank; Groundwater contamination (search for similar items in EconPapers)
JEL-codes: D62 I18 Q51 Q53 R2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0166046216300345
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Impacts of Underground Petroleum Releases on a Homeowner's Decision to Sell: A Difference-in-Differences Approach (2016)
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:eee:regeco:v:69:y:2018:i:c:p:11-24

DOI: 10.1016/j.regsciurbeco.2017.12.006

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().