The impact of hazardous waste on property values: The effect of lead pollution

Abstract

This paper examines the impact of lead pollution on property values in Anniston, Alabama, one of the most polluted cities in the US. A hedonic house price analysis enabled us to examine the extent of lead contamination’s effect on property values there, as well as property value losses due to the presence of an army depot. We estimated that lead cleanup would provide an increased property value of $1,140 per household and found that living 1 km closer to the polluting sites reduces property values by approximately 2%, a figure consistent with previous research regarding the connection between environmental disamenities and property values.

Keywords

• hedonic analysis
• environmental disamenities
• externalities
• urban economics