Hurricane-Induced Discharges from Superfund Sites: A Hedonic Price Analysis of Real Estate Market Responses

Abstract

This study investigates the impact of hurricane-induced discharges from Superfund sites on residents’ risk perception and housing values in Harris County, Texas. Employing a difference-in-differences hedonic approach with property sales data from 2013 to 2019, we analyze how residents adjust their risk perception based on environmental hazard information and whether this affects the real estate market. Examining proximity to Superfund sites, we find a 27% reduction in price for houses located within half a mile of impacted sites, diminishing with distance. The findings provide valuable insights for enhancing hazardous waste management through targeted interventions, risk assessments, and response plans.