Economic benefits of remediating the Sheboygan River, Wisconsin Area of Concern

Abstract

This study estimates the economic benefits of remediation in the Sheboygan River, WI Area of Concern (AOC) using two distinct empirical methods. The methodology parallels that described by Braden et al. (2008). The results are mixed. Using hedonic analysis of property sales, for owner-occupied homes within a 5-mile radius of the Sheboygan River AOC, the overall estimated loss of value is $158 million (8% of market value). Of this total, only $49 million in losses for homes closest to the upper river segment has strong statistical support. The impacts are greatest proportionally for properties closest to the AOC. A survey-based method yields a mean estimate of $218 million (10% of property value) in willingness to pay for full cleanup of the AOC. If remediation were to induce recovery of property values, then the local communities could benefit through increased property tax revenues. Show more