In this paper, we evaluate the effect of environmental contamination situations on residential property values. Using the meta-analysis technique, conclusions are drawn about the effect of location, type of study conducted, empirical technique used, and economic conditions on various outcomes. Using observations extracted from 40 peer-reviewed articles, meta-regression analysis is used to identify the factors that explain variation in marginal willingness to pay for environmental amenities and disamenities as a percentage of the average unimpaired value of local residential properties. Our findings suggest that relatively similar property value diminution conclusions are obtained regardless of the methodological approach employed. Additionally, we find no evidence of ‘‘publication bias’’ in our results.
Authors: Clifford A. Lipscomb, Abigail Mooney, and John A. Kilpatrick
Originally published in the Journal of Real Estate Literature, Vol. 21, No. 2 (2013).