Determining Market Perceptions on Contamination of Residential Property Buyers Using Contingent Valuation Surveys

28 Pages Posted: 26 Dec 2006

See all articles by Robert A. Simons

Robert A. Simons

Cleveland State University

Kimberly Winson-Geidman

Savannah State University

Abstract

This study reports the results of contingent valuation (CV) studies conducted in eight states in the United States. Over 1,100 telephone interviews examined valuation effects on residential properties impacted by Leaking Underground Storage Tanks (LUST). Negative discounts for marginal bidders with affected ground water were quite consistent, varying from 25% to 33%. ANOVA established that bidding patterns from six of the seven states were statistically similar while male bidders, those over 40 years of age and those with no high school degree were more likely to bid; those with higher incomes and those bidding on certain, rather than suspected contamination, were less likely to bid. Contingent valuation results benchmark reasonably close to but higher than revealed preference outcomes for residential LUST sites in Ohio.

Keywords: LUST, leaking underground storage tanks, valuation, residential

JEL Classification: C32,C52,D81,D92,L85,O18,O11,O3,R11,R14

Suggested Citation

Simons, Robert A. and Winson-Geidman, Kimberly, Determining Market Perceptions on Contamination of Residential Property Buyers Using Contingent Valuation Surveys. Journal of Real Estate Research, Vol. 27, No. 2, 2005, Available at SSRN: https://ssrn.com/abstract=953680

Robert A. Simons (Contact Author)

Cleveland State University ( email )

Levin College 1737 Euclid, No. 128
Cleveland, OH 44115
United States
216-687-5258 (Phone)
216-687-9239 (Fax)

Kimberly Winson-Geidman

Savannah State University ( email )

Savannah, GA 31404
United States