Hedonic property values and water quality: A meta-analysis of commodity, market, and methodological choices.

This study quantitatively reviews the hedonic literature examining surface water quality to assess how attributes of the commodity, housing market, and methodological choices lead to variation in the significance and expected sign of the estimated property value effects (i.e., elasticities). We conduct a meta-analysis of 29 studies with 290 unique estimates, published or released between 1985 and 2017, and find evidence based on probit meta-regression models that some of the definitions and decisions made in primary studies do influence the estimated relationship between water quality and home prices. Our most robust evidence suggests that methodological choices (e.g., accounting for spatial dependence, or if the water quality measure was based on something other than in situ measurement) have a critical role in determining the likelihood of finding a significant and theoretically expected result; and perhaps most importantly, it is not always selections that reflect best practices that lead to this finding. This study can help identify potential concerns with data and modeling choices in the collective hedonic literature focused on water quality.

Property values, water quality, and benefit transfer: A nationwide meta-analysis.

We construct a comprehensive, publicly-available meta-dataset based on 36 hedonic studies that examine the effects of water quality on housing values in the United States. The meta-dataset includes 656 unique estimates and entails a cluster structure that accounts for price effects at different distances. Focusing on water clarity, we estimate reduced-form meta-regressions that account for within-market dependence, statistical precision, housing market and waterbody heterogeneity, publication bias, and methodological practices. While we find evidence of systematic heterogeneity, the out-of-sample transfer errors are large. We discuss the implications for benefit transfer and future work to improve transfer performance.

Does short-term, airborne lead exposure during pregnancy affect birth outcomes? Quasi-experimental evidence from NASCAR's deleading policy.

BACKGROUND: There is evidence of a weak placental-fetal barrier to lead, suggesting that maternal lead exposure could affect the fetus. The health consequences for newborns from in utero lead exposure are not well understood. OBJECTIVES: We estimated the effects by trimester, of short-term (<1 week), airborne lead exposure during pregnancy on birth outcomes. METHODS: We use quasi-experimental variation in airborne lead exposure during pregnancy, based on NASCAR's deleading of racing fuel in 2007, in a difference-in-differences model, to estimate the effect of deleading on the birth outcomes of all live births (n = 147,673) in the Charlotte-Concord-Gastonia Metropolitan Statistical Area between 2004 and 2009. RESULTS: After deleading, children born to mothers residing <4000 m of Charlotte Motor Speedway (relative to those residing >10,000 m) experienced an average increase in birthweight (BW) of 102.50 g [P < 0.001]. The probability of low birthweight (LBW) declined by 0.045 [P = 0.001], preterm (PRE) births by 0.03 [P = 0.04], and small for gestational age (SGA) by 0.04 [P = 0.002]. We find that benefits accrue primarily in preterm LBW and SGA babies, and from decreased lead exposure in the first trimester. CONCLUSIONS: Short-term exposure to airborne lead during pregnancy adversely affects birth outcomes. Reducing even very brief exposure to airborne lead during pregnancy may improve birth outcomes.

Cardiovascular Mortality and Leaded Aviation Fuel: Evidence from Piston-Engine Air Traffic in North Carolina.

Leaded fuel used by piston-engine aircraft is the largest source of airborne lead emissions in the United States. Previous studies have found higher blood lead levels in children living near airports where leaded aviation fuel is used. However, little is known about the health effects on adults. This study is the first to examine the association between exposure to aircraft operations that use leaded aviation fuel and adult cardiovascular mortality. We estimated the association between annual piston-engine air traffic and cardiovascular mortality among adults age 65 and older near 40 North Carolina airports during 2000 to 2017. We used several strategies to minimize the potential for bias due to omitted variables and confounding from other health hazards at airports, including coarsened exact matching, location-specific intercepts, and adjustment for jet-engine and other air traffic that does not use leaded fuel. Our findings are mixed but suggestive of adverse effects. We found higher rates of cardiovascular mortality within a few kilometers downwind of single- and multi-runway airports, though these results are not always statistically significant. We also found significantly higher cardiovascular mortality rates within a few kilometers and downwind of single-runway airports in years with more piston-engine air traffic. We did not consistently find a statistically significant association between cardiovascular mortality rates and piston-engine air traffic near multi-runway airports, where there was greater uncertainty in our measure of the distance between populations and aviation exposures. These results suggest that (i) reducing lead emissions from aviation could yield health benefits for adults, and (ii) more refined data are needed to obtain more precise estimates of these benefits. Subject Areas: Toxic Substances, Health, Epidemiology, Air Pollution, Ambient Air Quality. JEL codes: Q53, I18.

Early childhood lead exposure and the persistence of educational consequences into adolescence.

BACKGROUND: There is consensus that early childhood lead exposure causes adverse cognitive and behavioral effects, even at blood lead levels (BLL) below 5 µg/dL. What has not been established is to what extent the effects of childhood lead exposure persist across grades. OBJECTIVE: To measure the effects of early childhood lead exposure (BLL 1-10 µg/dL) on educational performance from grades 3-8; to determine if effects in lower grades persist as a child progresses through school; and if so, to characterize the pattern of persistence. METHODS: We examine data from 560,624 children living in North Carolina between 2000 and 2012 with a BLL ≤10 µg/dL measured between age 0-5 years. Children are matched to their standardized math and reading scores for grades 3-8, creating an unbalanced panel of 2,344,358 student-year observations. We use socio-economic, demographic, and school information along with matching techniques to control for confounding effects. RESULTS: We find that early childhood exposure to low lead levels caused persistent deficits in educational performance across grades. In each grade (3-8), children with higher blood lead levels had, on average, lower percentile scores in both math and reading than children with lower blood lead levels. In our primary model, we find that children with BLL = 5 µg/dL in early childhood ranked 0.90-1.20 (1.35-1.55) percentiles lower than children with BLL ≤ 1 µg/dL on math (reading) tests during grades 3-8. As children progressed through school, the average percentile deficit in their test scores remained stable. CONCLUSIONS: Our study shows that the adverse effects of early childhood exposure to low lead levels persist through early adolescence, and that the magnitude of the test-score percentile deficit remains steady between grades 3-8.

Adaptation, Sea Level Rise, and Property Prices in the Chesapeake Bay Watershed.

Coastal communities are facing the dual threat of increasing sea level rise (SLR) and swelling populations, causing challenging policy problems. To help inform policy makers, this paper explores the property price impact of structures that help protect against SLR using a novel and spatially explicit dataset of coastal features. Results indicate that adaptation structures can have a significant positive impact on waterfront home prices, with the most vulnerable homes seeing the largest impacts. The Chesapeake Bay is facing increasing pressure from SLR, and this is one of the first papers to report that local property markets are incorporating that threat.

Valuing Ecological Improvements in the Chesapeake Bay and the Importance of Ancillary Benefits.

Reducing the excess nutrient and sediment pollution that is damaging habitat and diminishing recreational experiences in coastal estuaries requires actions by people and communities that are within the boundaries of the watershed but may be far from the resource itself, thus complicating efforts to understand tradeoffs associated with pollution control measures. Such is the case with the Chesapeake Bay, one of the most iconic water resources in the United States. All seven states containing part of the Chesapeake Bay Watershed were required under the Clean Water Act to submit detailed plans to achieve nutrient and sediment pollution reductions. The implementation plans provide information on the location and type of management practices making it possible to project not only water quality improvements in the Chesapeake Bay but also improvements in freshwater lakes throughout the watershed, which provide important ancillary benefits to people bearing the cost of reducing pollution to the Bay but unlikely to benefit directly. This paper reports the results of a benefits study that links the forecasted water quality improvements to ecological endpoints and administers a stated preference survey to estimate use and nonuse value for aesthetic and ecological improvements in the Chesapeake Bay and watershed lakes. Our results show that ancillary benefits and nonuse values account for a substantial proportion of total willingness to pay and would have a significant impact on the net benefits of pollution reduction programs.

Contamination and Incomplete Information:: Bounding Implicit Prices using High-Profile Leaks.

Incomplete information can lead households to underprice environmental disamenities in the housing market. To bound true implicit prices, researchers sometimes turn to high-profile cases involving significant media and community attention. However, prior research also finds that high-profile cases can lead to "stigma" effects that may confound interpretation of implicit prices. This study compares these opposing effects at the highest profile underground storage tank releases across the United States over the last thirty years. We utilize covariate matching and estimate difference-in-differences hedonic regressions at each site, and then conduct a cross-site meta-analysis to estimate the average treatment effects. We find an average housing price depreciation of 2% to 6% upon discovery of a release, which is an upper bound on the implicit price of contamination at more typical sites. Following cleanup, we find a housing price appreciation of a similar magnitude, suggesting that even in high-profile cases, surrounding neighborhoods do not experience persistent stigma.

Improving Water Quality in an Iconic Estuary: An Internal Meta-analysis of Property Value Impacts around the Chesapeake Bay.

This study conducts a meta-analysis and benefit transfer of the value of water clarity in the Chesapeake Bay estuary to estimate the property value impacts of pollution reduction policies. Estimates of the value of water clarity are derived from separate hedonic property value analyses of 14 counties bordering the Bay. The meta-analysis allows us to: 1) estimate the average effect of water clarity in the Chesapeake Bay, 2) investigate heterogeneity of effects across counties based on socioeconomic and ecological factors, 3) evaluate different measures of water clarity used in the original hedonic equations, and 4) transfer the values to Bayfront counties in nearby jurisdictions to estimate the property value impacts of the Total Maximum Daily Load (TMDL), a policy to reduce nutrient and sediment pollution entering the Bay that is expected to improve water clarity and ecological health. We also investigate the in-sample and out-of-sample predictive power of different transfer strategies and find that a simpler unit value transfer can outperform more complex function transfers. We estimate that aggregate near-waterfront property values could increase by roughly $400 million to $700 million in response to water clarity improvements from the TMDL.

Can property values capture changes in environmental health risks? Evidence from a stated preference study in Italy and the United Kingdom.

Hedonic models are a common nonmarket valuation technique, but, in practice, results can be affected by omitted variables and whether homebuyers respond to the assumed environmental measure. We undertake an alternative stated preference approach that circumvents these issues. We examine how homeowners in the United Kingdom and Italy value mortality risk reductions by asking them to choose among hypothetical variants of their home that differ in terms of mortality risks from air pollution and price. We find that Italian homeowners hold a value of a statistical life (VSL) of €6.4 million, but U.K. homeowners hold a much lower VSL (€2.1 million). This may be because respondents in the United Kingdom do not perceive air pollution where they live to be as threatening, and actually live in cities with relatively low air pollution. Italian homeowners value a reduction in the risk of dying from cancer more than from other causes, but U.K. respondents do not hold such a premium. Lastly, respondents who face higher baseline risks, due to greater air pollution where they live, hold a higher VSL, particularly in the United Kingdom. In both countries, the VSL is twice as large among individuals who perceive air pollution where they live as high.

Cancer values of prevented fatalities (VPFs), one size does not fit all: the benefits of contaminated site cleanups in Italy.

The authors conducted a survey based on conjoint choice experiments in Milan, Italy, about mortality risk reductions delivered by hypothetical private behaviors and public programs, and used it to estimate the value of a prevented fatality (VPF) when the cause of death is cancer. Their estimate of the VPF is 4.2 million Euros. The VPF is about C1 million larger when the risk reduction is delivered by a public program, but further analyses reveal that it is so only when the respondent believes that public programs are effective at reducing this particular type of mortality risk This estimate of the VPF is higher than generic European Union-wide figures recommended by the European Commission Directorate-General for Environment (DG Environment) for environmental policy analyses, and is comparable to other VPFs that are appropriate for Italy, hazardous waste regulations, and enforcement-based cleanup programs. The authors use their VPF to compute the benefits of addressing leaking landfills, illegal disposal of hazardous wastes, and poor hazardous waste management practices in the provinces of Naples and Caserta in southern Italy. The authors also examine the importance of the discount rates, since the mortality benefits of remediation begin in 20 yr and are assumed to continue over 30 yr.