THE EFFECT OF AN INCINERATOR SITING ON HOUSING APPRECIATION RATES

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