The Gulf Oil Spill and Its Impact on Coastal Property Value Using the Before-and-After Procedure

http://ares.metapress.com/content/w3871jn5483l8465/

Abstract:

The before-and-after procedure is applied to Coastal Alabama property to estimate the economic loss in property value caused by the 2010 Gulf of Mexico Oil Spill. The project is unique in that it relies on market trends shown in the total population of deed recordings allowing the total impact to be estimated with the dynamic nature of a potential stigma. The results indicate that the oil spill has minimal influence on property value for waterfront condos and single-family residential, and approximately −16% in value on waterfront vacant residential land.

The oil slick as seen from space by NASA's Terra satellite on 24 May 2010

http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill

 

by Donald Epley, University of South Alabama, Mobile, AL 36608

Journal of Real Estate Literature published by the American Real Estate Society
Volume 20; Number 1; 2012; Pages 121-137
A free 2011 version of the report is available at: 
http://www.southalabama.edu/mcob/realestate/documents/appraisal/impactspillonpropertyvalueapril2011.pdf