RT Journal Article
SR Electronic
T1 It’s the Smell
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 063023-0058R
DO 10.3368/le.102.1.063023-0058R
A1 Chen, Jeff
A1 Cornwall, Gary
A1 Wentland, Scott
YR 2025
UL http://le.uwpress.org/content/early/2025/07/22/le.102.1.063023-0058R.abstract
AB This study examines how the housing market responds to closing a major environmental disamenity nearby, particularly when the credibility of local policy is uncertain. Fresh Kills Landfill (NY) provides an empirical setting to examine this question across multiple distinct events with varying credibility signals. Results from a difference-in-differences analysis show that market prices and volumes respond sharply to credible actions (i.e., capping the landfill and park transitioning) rather than policy announcements. The findings suggest resolving uncertainty can have a powerful supply effect for housing markets, applying downward pressure on prices in the short run.