THE EFFECT OF AN INCINERATOR SITING ON HOUSING APPRECIATION RATES

Several studies have documented a decline in property values due to the existence of an undesirable facility, but most examine only two points in time. One study found declines in house Values near an incinerator at several points in time, which were due to changes in information. This suggests that the adjustment period can be quite long; if prices do not adjust immediately, the house's appreciation rate will reflect the speed of adjustment. This study finds that appreciation rates are affected as early as the construction stage of an incinerator, and the adjustment continues several years after the facility has begun operation. (C) 1995 Academic Press, Inc.