RT Journal Article
SR Electronic
T1 Incomplete Information and Adverse Impacts of Environmental Cleanup
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 386
OP 404
DO 10.3368/le.94.3.386
VO 94
IS 3
A1 Lang, Corey
A1 Cavanagh, Patrick
YR 2018
UL http://le.uwpress.org/content/94/3/386.abstract
AB We use the hedonic method to examine the external effects of Rhode Island’s voluntary brownfield program. We hypothesize that housing price impacts are a combination of valuation of environmental improvement and response to information disclosure initiated by remediation. The results indicate that housing prices decline after nearby remediation, suggesting incomplete information about the presence of risk. Further, we find empirical evidence that price impacts and the degree of incomplete information are different across neighborhoods. Specifically, low-housing-value neighborhoods experience price declines following remediation, while high-value neighborhoods experience price increases, leading to an overall regressive impact. (JEL D63, Q51)