HOUSE PRICE RECOVERY AND STIGMA AFTER A FAILED SITING

The costs of siting a focally undesirable facility include those borne by developers, local government, and those homeowners whose houses de cline in value. When a siting fails, developer and government costs ar e still incurred, in addition to the costs of community opposition. Ho wever, the impact of a failed siting on residential real estate prices has not been assessed. In this study, house prices in a market surrou nding a failed incinerator are examined. While proposing an incinerato r did negatively impact house values, prices rebounded after the facil ity was cancelled. Residents did not attach any stigma to the site.