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ESTIMATING THE EFFECTS OF BROWNFIELDS AND BROWNFIELD REMEDIATION ON PROPERTY VALUES IN A NEW SOUTH CITY
Author(s) -
Schwarz Peter M.,
Gill Gwendolyn L.,
Hanning Alex,
Cox Caleb A.
Publication year - 2017
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12171
Subject(s) - brownfield , property value , residential property , environmental remediation , environmental science , property (philosophy) , geography , economics , redevelopment , contamination , economic geography , civil engineering , engineering , ecology , philosophy , real estate , finance , epistemology , biology
Using data from Charlotte, NC , a New South city without a legacy of heavily contaminated properties, we find the distance from unremediated brownfields—typically former industrial properties believed to have modest contamination—to have no effect on residential sales values, but proposed cleanup and actual remediation have positive, substantial, and significant effects especially within 0.5 miles of the brownfield. Our results are consistent whether we examine all property values within a given distance, such as 0.5 miles, or examine discrete distances, such as 0.3–0.5 miles. An estimate of the benefits is on the order of $4 million. ( JEL Q51, Q24, Q28, R52)