This paper contributes to the debate over public benefits and costs of state-funded voluntary cleanup programs, using evidence from property values in New York City. We value site redevelopment separately from cleanup and examine time to capitalization. Using property fixed effects and controlling for time-varying shocks, New York’s Brownfield Cleanup Program added 4% to property values. Off-site gains averaged 5.6% for properties with three units or less and 1.2% for multifamily residences, producing a $579.3 million tax gain that does not exceed the $667.9 million in program spending. Benefits stem from program participation and cleanup, but not from site redevelopment.
https://www1.nyc.gov/assets/oer/images/content/hero/IMG_3236_clean-soil-stockpile.JPG |
by Olesya M. Savchenko 1 and John B. Braden 2
1. Assistant professor, Food and Resource Economics Department, University of Florida, Gainesville; savchenko.olesya@gmail.com
2. Professor Emeritus; Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign; jbb@illinois.edu
Land Economics http://le.uwpress.org/ via University of Wisconsin Press http://www.uwpress.org/
Volume 95, Number 3, August 1, 2019; pages 369-390
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