Environmental liability and redevelopment of old industrial land
By: Hilary Sigman.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- working paper 15017; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15017.
Publisher: National Bureau of Economic Research
Published: 2009
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Many communities are concerned about the reuse of potentially contaminated land ("brownfields") and believe that environmental liability is a hindrance to redevelopment.  However, with land price adjustments, liability might not impede the reuse of this land.  Existing literature has found price reductions in response to liability, but few studies have looked for an effect on vacancies.  This paper studies variations in state liability rules -- specifically, strict liability and joint and several liability -- that affect the level and distribution of expected private cleanup costs.  It explores the effects of this variation on industrial land prices and vacancy rates and on reported brownfields in a panel of cities across the United States.  In the estimated equations, joint and several liability reduces land prices and increases vacancy rates in central cities.  Neither a price nor quantity effect is estimated from strict liability.  The results suggest that liability is at least partly capitalized, but does still deter redevelopment"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/4/2009.

Includes bibliographical references.

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