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- Title
A Pipeline Spill Revisited: How Long Do Impacts on Home Prices Last?
- Authors
Roddewig, Richard J.; Brigden, Charles T.; Baxendale, Anne S.
- Abstract
The Trump administration has approved pipeline proposals and plans to open more offshore and Bureau of Land Management areas to oil and gas leasing. Consequently, appraisers may be asked more frequently to determine the effect of future pipeline ruptures on home prices. A 2001 article published in The Appraisal Journal investigated the effect of an April 2000 pipeline rupture, and resulting spill, on home sale prices along the Patuxent River in Maryland. That study looked at sales in one community impacted by the spill, Golden Beach, and studied sale prices during the first six months following the incident. The study concluded there was a 10.9% to 12.6% diminution in property values. However, since the sales data involved covered only the first six months following the spill, the authors recommended that further research be done to determine if the impact on prices extended beyond six months. The current study completes the additional research recommended by the authors of the 2001 Appraisal Journal article. The study analyses sales data between 1997 and 2008 using matched pairs and trendline analysis. The results confirm there was an impact on prices in the first eighteen months or so after the spill, but find that by 2002, following completion of shoreline cleanup, prices had rebounded, and there was no permanent impact on prices in subsequent years.
- Subjects
UNITED States; OIL spills; HOME prices; UNITED States. Bureau of Land Management; HOME sales; OIL spill cleanup; LEASE &; rental services
- Publication
Appraisal Journal, 2018, Vol 86, Issue 1, p23
- ISSN
0003-7087
- Publication type
Article