The Impacts of Underground Petroleum Releases on a Homeowner's Decision to Sell: A Difference-in-Differences Approach
Dennis Guignet and
Adan Martinez-Cruz ()
No 201603, NCEE Working Paper Series from National Center for Environmental Economics, U.S. Environmental Protection Agency
Actual and perceived damages from environmental disamenities may disrupt a 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 potential disamenity facilitates a difference-in-differences methodology. The results reveal that the optimal 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 R20 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2016-06, Revised 2016-06
New Economics Papers: this item is included in nep-ene and nep-env
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https://www.epa.gov/environmental-economics/workin ... -homeowners-decision First version, 2016 (application/pdf)
Journal Article: The impacts of underground petroleum releases on a homeowner's decision to sell: A difference-in-differences approach (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:nev:wpaper:wp201603
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