Author(s): Katherine A Kiel, Katherine T McClain
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The impact of an undesirable land use on house prices is not constant over time. Previous proximity studies which employed only discrete changes in information, such as an EPA Superfund site announcement, ignored potentially important phases of the adjustment process. This study explicitly measures how the effects of an undesirable land use evolve over the siting process and life of the disamenity. Some price response to rumors of a facility is indicated, and the evidence that prices respond at groundbreaking, before operation, is strong. The distance premium persists at least 7 years after the facility begins operations.
This article was published in Journal of Environmental Economics and Management
and referenced in Journal of Hotel & Business Management