The Value of a Healthy Home: Lead Paint Remediation and Housing Values

Stephen Billings and Kevin Schnepel

No 10873, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The presence of lead paint significantly impairs cognitive and behavioral development, yet little is known about the value to households of avoiding this residence-specific environmental health risk. In this paper, we estimate the benefits of lead-paint remediation on housing prices. Using data on all homes that applied to a HUD-funded program in Charlotte, North Carolina, we adopt a difference-in-differences estimator that compares values among remediated properties with those for which an inspection does not identify a lead paint hazard. Results indicate large returns for public and private investment in remediation with each $1 spent on lead remediation generating $2.60 in benefits as well as a reduction in residential turnover.

Keywords: value of environmental health risk; lead hazard remediation; lead paint exposure; urban environmental health (search for similar items in EconPapers)
JEL-codes: I18 Q51 Q52 Q58 R21 R23 R31 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2017-07
New Economics Papers: this item is included in nep-env, nep-hea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published - published in: Journal of Public Economics, 2017, 153, 69 - 81

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Related works:
Journal Article: The value of a healthy home: Lead paint remediation and housing values (2017)
Working Paper: The Value of a Healthy Home: Lead Paint Remediation and Housing Values (2015)
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