A study on soil and groundwater pollution remediation of the surrounding real estate prices and tax revenue impact

Abstract

To see whether the surrounding real estate price after soil and groundwater pollution remediation will revert to the level before the risk of implicit pollution, this paper uses research methods, such as the hedonic price method and contingent valuation method for analysis. The results of empirical analysis reveal that the hedonic price method will be restricted by trade cases around pollution sites. In view of this, it proposes using the contingent valuation method and consumers` viewpoints for the analysis. Empirical results show that after pollution remediation the respondents are willing to pay an average of $1168 per square meter, which is slightly higher than the current price of $1059 per square meter with an increase of about 10%. Therefore, prices will recover after remediation at least to the level of the surrounding area. © 2015 by the authors.