A Case Study in Contamination: Persistent Home Value Losses Associated with the Elk River Spill
By: Burton, Kati ; Maas, Alexander ; Lee, Katherine
Burton, Kati ; Maas, Alexander ; Lee, Katherine, A Case Study in Contamination: Persistent Home Value Losses Associated with the Elk River Spill, Journal of Agricultural and Resource Economics, Volume 47, Issue 3, September 2022, Pages 697-712
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.