A Meta-Analysis of the Effect of Environmental Contamination and Positive Amenities on Residential Real Estate Values
34 Pages Posted: 26 Dec 2006
This paper addresses the effects of environmental contamination and positive amenities on proximate residential real estate property values in the United States. Contamination sources include leaking underground storage tanks, superfund sites, landfills, water and air pollution, power lines, pipeline ruptures, nuclear power plants, animal feedlots and several other urban nuisance uses. The study summarizes a literature review of 75 peer-reviewed journal articles and selected case studies, and generates a data set of about 290 observations that contain information about each study's loss (the dependent variable), with the independent variables being distance from the source, type of contamination, urban or rural environment, geographic region, market conditions and several other variables. Ordinary least squares is used to determine the effect of the contamination variables on reduction in property value. Broad contamination types, amenities, selected economic regions, distance from the source, information, research method and several other variables are statistically significant.
Keywords: contamination, property value, environmental, residential
JEL Classification: K32, L11, L85, L52, L90, N50, O13, O18, O21
Suggested Citation: Suggested Citation
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By Lee Harris