Sustainability transitions of contaminated sites: a global meta-analysis
on economic effects of remediation behavior
Abstract
The worldwide diversity of contaminated sites, coupled with a scarcity
of available land in urban spatial planning, has led to an increasing
political significance for brownfield conservation and re-use to achieve
land resource sustainability. In this study, economic or so-called
rebound effects of land regeneration, are studied via a global
meta-analysis on value fluctuation of surrounding property. To this end,
a total of 91 observations from 28 HPM (Hedonic Pricing Model) studies
were synthesized to conduct a meta-analysis following a conditional
random-effects procedure. The empirical results indicate that, in line
with expectations, the conservation and recycling of land resource
indeed generate significant rebound in the implicit price of residential
houses, especially for those located within 2 kilometers of contaminated
sites. Before land remediation and re-use, dwellings closest in distance
to contaminated sites experience the greatest value loss. On average,
the depreciation in property values within the first 1km distance from a
contaminated site is about 8.18%, significantly at the 1% level, while
the corresponding adverse impact from 1 to 2 km distance is a 4.8%
price premium significantly at the 5% level. The significance of the
stigma or rebound effects depend on 12 attributes, in which, house age,
location, FAR (Floor Area Ratio) and CBD (Central Business District)
variables have the largest impact, of -37.38%~37.5%.
From a practical perspective, the findings of this meta-analysis: 1)
help refine contributing parameters in HPM studies to evaluate
environmental economics; and 2) provide meaningful decision-making
support for cost-effective remediation and benefit maximization.