Economic Benefits of Remediating the Ashtabula River Area of Concern

Abstract

Abstract This study uses hedonic modeling to estimate the economic benefits of remediation in the Ashtabula River Area of Concern (AOC) in Ohio. Data from residential single-family housing sales between 1997 and 2020 are used in a spatial difference-in-difference (DiD) analysis. The analysis compares housing price differences pre- and post-remediation between houses sold within 2000 m of the AOC and houses sold outside of this area. Rather than a recovery of housing prices after remediation, results indicate additional losses of 14%. Total property losses amount to $40.2 million. Past studies conducted using benefit transfers prior to remediation had predicted property value benefits of as much as $35.6 million. The contrast between predicted and observed impacts on property value highlights the need for more retrospective analysis to identify actions that will yield better predictions and outcomes.