Water Contamination, Land Prices, and the Statute of Repose

Posted: 22 Aug 2015

See all articles by John F. Chamblee

John F. Chamblee

University of Georgia - Department of Anthropology

Carolyn A. Dehring

University of Georgia - Department of Insurance, Legal Studies, Real Estate

Craig A. Depken

University of North Carolina at Charlotte - The Belk College of Business Administration - Department of Economics

Joseph Nicholson

Montclair State University - Economics and Finance

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Date Written: August 20, 2015

Abstract

We examine how water contamination risk from an inactive hazardous waste site is capitalized into surrounding vacant land prices. After public knowledge of the first instance of off-site contamination, we find that shallow groundwater contamination potential is negatively capitalized into land prices, as is proximity to a known contaminated well. Public knowledge of off-site contamination and associated land price changes occur after the North Carolina's 10-year statue of repose. Our findings raise questions concerning such statutes when environmental contamination has a long latency period, especially given a recent Supreme Court ruling that Superfund law does not preempt state statutes of repose.

Keywords: Superfund; Pollution; Hydrology; Property values

Suggested Citation

Chamblee, John F. and Dehring, Carolyn A. and Depken, Craig A. and Nicholson, Joseph, Water Contamination, Land Prices, and the Statute of Repose (August 20, 2015). Journal of Real Estate Finance and Economics, Vol. 51, No. 3, 2015, Available at SSRN: https://ssrn.com/abstract=2648324

John F. Chamblee

University of Georgia - Department of Anthropology ( email )

Athens, GA 30602-6254
United States

Carolyn A. Dehring

University of Georgia - Department of Insurance, Legal Studies, Real Estate ( email )

Athens, GA 30602-6255
United States
706-542-3809 (Phone)

Craig A. Depken (Contact Author)

University of North Carolina at Charlotte - The Belk College of Business Administration - Department of Economics ( email )

Charlotte, NC 28223
United States

Joseph Nicholson

Montclair State University - Economics and Finance ( email )

Montclair, NJ 07043
United States

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