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Webinar: Bloom and Bust: Algae Takes a Toll on the Housing Market
Tuesday, 16 January 2018, 12:00
Tuesday, January 16, 2018. 12:00PM. Webinar: Bloom and Bust: Algae Takes a Toll on the Housing Market. Tingting Liu, University of Nebraska-Lincoln. Sponsored by Center for Satellite Research and Applications. More information here.
We examine the impact of water quality in Narragansett Bay on housing prices in coastal towns and municipalities using a hedonic housing-price model. Unlike other hedonic studies of water quality, we test whether housing market responds to average water quality or more to extreme events. We also test the spatial and temporal extent of effects of water quality on housing prices. We find that poor coastal water quality, measured in terms of the concentration of chlorophyll, has a negative impact on housing prices that diminishes with distance from the shoreline. Furthermore, our finding suggests that housing prices are most influenced by the extreme environmental conditions, which may be accompanied by unpleasant odors, discoloration and even fish kills. We further predict potential increases in home values associated under water quality improvement scenarios and find an increase in the values of homes in coastal communities along Narragansett Bay of about $18 million up to $136 million.