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House price recovery and stigma after a failed siting

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The costs of siting a locally undesirable facility include those borne by developers, local government, and those homeowners whose houses decline in value. When a siting fails, developer and government costs are still incurred, in addition to the costs of community opposition. However, the impact of a failed siting on residential real estate prices has not been assessed. In this study, house prices in a market surrounding a failed incinerator are examined. While proposing an incinerator did negatively impact house values, prices rebounded after the facility was cancelled. Residents did not attach any stigma to the site.
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Document Type: Research Article

Publication date: 1996-11-01

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