A Case Study in Contamination: Persistent Home Value Losses Associated with the Elk River Spill

This study quantifies the magnitude and spatial-temporal persistence of home value losses associated with a chemical spill in the Elk River using difference-in-difference, spatial regression techniques. Results suggest homes within 3 miles of the spill experienced a value loss, with the largest effe...

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Bibliographic Details
Published inJournal of agricultural and resource economics Vol. 47; no. 3; pp. 697 - S6
Main Authors Burton, Kati, Maas, Alexander, Lee, Katherine
Format Journal Article
LanguageEnglish
Published Logan Western Agricultural Economics Association 01.09.2022
Edition1835
Subjects
Carcinogens
Case studies
Chemical spills
Contamination
Costs
Drinking water
Gas wells
Groundwater pollution
Homeowners
Housing prices
Hypotheses
Municipal water
Oil pollution
Property values
Quality standards
Real estate
Rivers
Scandals
Stigma
Storage tanks
Valuation
Water quality
Water quality standards
Water supply
Water utilities
West Virginia
United States > US
Elk River
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Summary:This study quantifies the magnitude and spatial-temporal persistence of home value losses associated with a chemical spill in the Elk River using difference-in-difference, spatial regression techniques. Results suggest homes within 3 miles of the spill experienced a value loss, with the largest effect on homes within one mile of the spill. Homes beyond 3 miles experienced no significant effect. The loss in value affected prices for years after the contamination was remediated. Homes within the water utility service area experienced a significant increase in value following the spill, which may reflect public value of water quality monitoring by a utility.
ISSN:1068-5502
2327-8285
DOI:10.22004/ag.econ.316751