SSRN-Fear (as a Measure of Damages) Strikes Out: Two Case Studies Comparisons of Actual Market Behavior with Opinion Survey Research by William Kinnard, Mary Geckler, Sue Dickey

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Fear (as a Measure of Damages) Strikes Out: Two Case Studies Comparisons of Actual Market Behavior with Opinion Survey Research

WILLIAM N. KINNARD
Real Estate Counseling Group of Connecticut, Inc.
MARY BETH GECKLER
Real Estate Counseling Group of Connecticut, Inc.
SUE ANN DICKEY
S.A.D. Association

April 1994

Abstract:
For more than a decade, since the early 1980's, a feeling has developed among homeowners and landowners in proximity to what have come to be known as Locally Undesirable Land Uses (LULUs) represent hazards to human health and safety. As a result, increasing numbers and amounts of claims for damages associated with property value diminution have been filed in both State and Federal Courts. The major reason given is the existence of "widespread public fear" and "widespread public perceptions of hazards" emanating from these LULUs. The list of claimed or perceived hazards is long and growing. The hazards include: water contamination from toxic and hazardous materials, soil contamination from toxic and hazardous materials, air contamination from toxic, hazardous and noxious materials, noise from airports or highways (or both), radiation from various sources, Electromagnetic fields (EMFs) and of course hazardous and toxic materials from landfills or waste storage facilities. All of this is in addition to visual and aural impacts that intrude on "quiet enjoyment". From these claims, and several important Court decisions based upon them, a mythology about the direct, linear relationship between "widespread perceived fear" and diminished values of residential properties proximate to these sources of perceived hazards has emerged. The objective of the research reported in this paper is to examine and test the premises on which that mythology has been constructed.

JEL Classifications: R22

Working Paper Series

Contact Information for WILLIAM N. KINNARD (Contact Author) Email address for WILLIAM N. KINNARD Real Estate Counseling Group of Connecticut, Inc. P.O. Box 558 Storrs , CT 06268 United States 860-429-1005 (Phone) 860-429-4468 (Fax)
Contact Information for SUE ANN DICKEY Email address for SUE ANN DICKEY S.A.D. Association United States
Contact Information for MARY BETH GECKLER Email address for MARY BETH GECKLER Real Estate Counseling Group of Connecticut, Inc. P.O. Box 558 Storrs , CT 06268 United States

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