Incomplete Information and Adverse Impacts of Environmental CleanupAccepted at Land Economics (2017)
This paper uses the hedonic method to examine the external effects of Rhode Island’s voluntary brownfield program in the time span 2003-2013. 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 of the program.
Publication DateMarch 1, 2017
Citation InformationCorey Lang and Patrick Cavanagh. "Incomplete Information and Adverse Impacts of Environmental Cleanup" Accepted at Land Economics (2017)
Available at: http://works.bepress.com/corey_lang/25/