Incomplete Information and Adverse Impacts of Environmental Cleanup

Corey Lang and Patrick Cavanagh

Land Economics, 2018, vol. 94, issue 3, 386-404

Abstract: We use the hedonic method to examine the external effects of Rhode Island’s voluntary brownfield program. We hypothesize that housing price impacts are a combination of valuation of environmental improvement and response to information disclosure initiated by remediation. The results indicate that housing prices decline after nearby remediation, suggesting incomplete information about the presence of risk. Further, we find empirical evidence that price impacts and the degree of incomplete information are different across neighborhoods. Specifically, low-housing-value neighborhoods experience price declines following remediation, while high-value neighborhoods experience price increases, leading to an overall regressive impact.

JEL-codes: D63 Q51 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.3368/le.94.3.386
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://le.uwpress.org/cgi/reprint/94/3/386
A subscription is required to access pdf files. Pay per article is available.

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:uwp:landec:v:94:y:2018:i:3:p:386-404

Access Statistics for this article

More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().