Search results

The “stigma” associated with remediated contaminated land is the blighting effect on property value caused by perceived risk and uncertainty. Uncertainties relate to negative intangible factors such as the inability to effect a total “cure”, the risk of failure of the remediation method, the risk of changes in legislation or remediation standards, the difficulty in obtaining finance, or simply a fear of the unknown. Post‐remediation “stigma” is the residual loss in value after all costs of remediation, including insurance and monitoring, have been allowed for. It equates to the difference in value between a remediated contaminated site and a comparable “clean” site with no history of contamination. The initial results from a study of the market sales data of post‐remediated vacant residential land along the Swan River, in Perth, Western Australia, from 1992‐1998 are summarized. The aim of this ongoing research is to estimate the amount of “stigma” arising from a site’s contamination history and measure the effect of this on residential property values of remediated property. The results show that while a site’s contamination history impacts negatively on property prices, the price decreases are offset by the positive influence on price from additional amenities provided in the case study neighbourhood.

This study aims to analyze and assess 21 years of media coverage (2000–2020) of Flix, a small industrial village located in an rural area on north-eastern Spain, which has endured in these years a severe environmental and industrial crisis, with a strong potential for stigmatization of the place.

The research is conceptualized under the Social Amplification of Risk Framework, a theoretical/conceptual approach aimed at accounting for the huge gaps that often arise between public perception of technological or environmental risks of some technologies, products and places and the expert estimations of these risks. The authors studied the coverage on Flix by a local, a regional and a national newspaper through a content analysis where the corpus (1,524 news pieces) was coded for several variables, including tone, genre and thematic area.

The studied coverage was in general overwhelmingly negative and strongly focused on “bad news” relating to pollution and deindustrialization, although this was much less the case in the local newspaper than in the regional and, in particular, the national newspaper. Thus, a territorially escalated pattern clearly emerges from our research concerning the stigmatization potential of news media coverage for the specific case under scrutiny.

To the authors’ knowledge, this is the first time such a longitudinal study of media coverage and its potential for place stigmatization is performed with this specific territorial perspective.

The purpose of this paper is to determine whether the discount placed on high voltage overhead transmission lines is underestimated.

A quantitative analysis was undertaken, using a high voltage overhead transmission line (HVOTL) case study, to determine the effect on property values prior and post removal of the HVOTL structure. Sales data and demographics are compared to determine the change in neighbourhood characteristics.

The results show that while the HVOTL is in place, the impact on value is confined to those properties in close proximity. This is in contradiction to the findings, where on removal of the HVOTL, the property values of the whole neighbourhood improve significantly.

The implication of this research is that property valuers (appraisers) need to change the way they take into account the presence of HVOTLs when valuing property, with more emphasis, being placed on the neighbourhood rather than just the properties in close proximity. While the HVOTL was in place, only properties in close proximity were negatively affected, but on removal of the HVOTL the whole neighbourhood increased in value.

Results expand on current knowledge by demonstrating the difference between the discount rate that the valuers apply to the presence of the HVOTL, as compared to the positive impact to the whole neighbourhood on removal of the HVOTL.

This paper aims to investigate residents’ perceptions of risk towards owning and living in residential property in Christchurch subsequent to the 2010 and 2011 Canterbury earthquakes to identify how these perceptions impact on the price residents are willing to pay for affected property. Such market behaviour can motivate homeowners to adopt risk mitigation measures.

An online survey was developed and the Web link distributed to Canterbury residents via the media. This method of distribution was adopted, as a postal survey was not possible due to the number of homes that had been destroyed by the earthquakes and the highly transient nature of the community as a result.

The results indicate that with the recent earthquake experience, residents are demonstrating risk mitigation behaviours through an aversion to investing in properties affected by, or with a risk of, liquefaction. Specifically, the majority of respondents had strong reservations about buying Technical Category 3 property, and would be prepared to pay 20 per cent (or > 20 per cent) less for it, indicating some stigma towards affected property. Further, most respondents would now prefer the construction of their home to be of a type that fared better in the earthquakes: lightweight, single-storey, with a concrete slab foundation. These housing preferences will likely drive the market towards the adoption of risk mitigation measures in the retrofit of existing homes as well as in the design and construction of new homes.

Due to the number of homes that had been destroyed by the earthquakes and the highly transient nature of the community as a result, probability sampling was not possible. This, together with the low response rate, means that the respondents surveyed may not be representative of the Christchurch population.

The outcomes of this research will be of interest not only to homeowners wanting to know how their home’s value has been impacted by market perceptions towards earthquake and liquefaction damage, particularly in the worst-affected areas, but also the rating valuers tasked with assessing property values for rating purposes. Property developers and builders involved in the repair of existing homes and construction of new homes will also want to know current market preferences. Government bodies will find the results informative of how the media has, and can be used, to motivate market behaviour towards risk mitigation, particularly in regard to “material risk” (as described in Solberg et al., 2010), that is risk from a scientific and technical viewpoint of probability of future risk, and as related to what has become known about these risks in terms of building structure, height, age, soil type/land categories and flood zones. Further, the results provide a gauge of how the community perceived the handling of the recovery process, so that the weaknesses highlighted can be addressed, which will help restore community trust.

This study fills a research void on the impact of residents’ perceptions of risk towards home ownership in a city impacted by significant earthquakes and resulting liquefaction.

The purpose of this paper is to quantify leaky building stigma associated with monolithic claddings, explore how this stigma has likely been amplified by media coverage, estimate the number of affected properties and quantify the collective house price impact on homeowners of monolithic‐clad dwellings in the Auckland region.

Residential sales transaction data organised in two subgroups (single‐family houses and multi‐unit dwellings) from 1997 through 2006 are analysed using a series of annual hedonic pricing models to empirically test for the presence of stigma. This is coupled with a descriptive analysis of leaky building media coverage to understand how this coverage may be influencing the stigma.

The empirical results show that a leaky building stigma exists and is discounting prices of the Auckland Region's monolithic‐clad single family houses by 5 per cent and multi‐unit dwellings by 10 per cent. Approximately 37,500 monolithic‐clad dwellings have been built in the region since 1992 and their homeowners have suffered an estimated $1 billion reduction in property values due to leaky building stigma.

Although leaky building stigma primarily relates to monolithic claddings, this stigma reflects elevated weathertightness risks associated with several Mediterranean‐style architectural features.

The study's findings can be directly applied to residential valuation practice and can assist the New Zealand government more accurately assess the full economic cost of the nation's leaky building problem.

This research provides an initial empirical study on stigma associated with leaky building syndrome. The findings offer direction to further research on other domestic and international housing markets that are experiencing similar stigma phenomenon.

The purpose of this study is to solve five key brownfield valuation problems.

This aim is achieved by using doctoral research on integrating the scientific process into the appraisal process. The first objective is demonstrating why four of the problems require solutions prior to solving the first problem, a valuation procedure for formerly used sites. A second objective is to use empirical data from appraisals to reveal why existing methodology is not reliable – because it does not solve the four problems.

The resulting findings are that a developmental model that incorporates the Triad approach to quantifying environmental uncertainty, initially used in the USA, simulates a process used by buyers to establish the price paid for brownfields with contaminated land.

The practical implication that results from this research is that valuers need to emulate the buyer's process when valuing this property type. Prescriptive procedures for valuation requiring the use of scientific methods, as used in the Triad process, need to be set forth to quantify the atypical uncertainties in valuing this property type. The results of this research should be of significant interest to all stakeholders that are involved in brownfield redevelopment, so that they can insure that their needs will be met by improved feasibility analysis.

This research is unique in that it is the first empirical test of the reliability of the valuation of brownfields that need to undergo a time‐consuming and often expensive soil remediation process.

Increasing litigation involving land contamination and an escalation in the number of incidents where property owners have suffered financial losses from these cases has resulted in negative impacts on property values and greater risks associated with investments in contaminated property. To date, there has been little systematic research on the valuation methodology that accounts for these risks. To help address this, two similar surveys were undertaken within New Zealand (NZ) and the United Kingdom (UK), the results of which are summarised here. The survey instruments were designed to determine what the respondents are currently doing when providing advice or producing valuations to account for the financial risks associated with investing in contaminated properties. It is hoped that the survey results will aid the process of developing “best practice” methodologies for use by valuers.

While numerous studies have been carried out in the US to determine the character and scope of the effects of contaminated, threatened or “stigmatized” properties on the terms and availability of debt financing, little appears in the published literature dealing with the attitudes, policies and requirements of equity investors. Hence, the extent of opposition from both institutional lenders and equity investors toward contaminated property is still uncertain. This paper summarises the results of parallel studies undertaken within New Zealand (NZ) and the USA to answer the question of how those who lend on, and invest in, property affected or impacted by contamination perceive the risks associated with this type of investment and evaluate its impacts. Of particular interest are the perceived effects of on‐site contamination on property investment and its financing.

Whilst many studies consider labelling as means of aggregated communication of environmental product features, the presentation of detailed product information seems a promising alternative. However, the mechanisms through which detailed product information takes effect on consumers requires better understanding. The purpose of this paper is to empirically develop a framework that focuses on consumers’ perceived usefulness of, and trust in, detailed product information, whilst also considering the role of environmental self-identity. This understanding will help businesses to further stimulate eco-friendly consumption.

Structural equation modelling and conditional process analysis are utilised to test hypotheses based on a sample of 279 respondents to a German online survey.

Results show that the perceived usefulness of product information (PUPI) has a positive effect on purchase intention, and this effect is intensified by an individual’s environmental self-identity. Furthermore, for consumers with high environmental self-identity, the effect of PUPI on purchase intention is mediated in turn by trust in detailed product information and resistance to negative information.

This study contributes to the debate on the role of product information in ethical consumption by showing how detailed product information gives rise to favourable behavioural outcomes. When detailed information is perceived as being useful, it can affect purchase intention through greater trust and an increased resistance to negative information. Further, detailed product information appears beneficial for both, the mass market and specific segments with high environmental self-identity. Hence, this study empirically establishes the effects of detailed product information on consumer decision making, thus informing sustainability-related marketing theory and practice.

This study examines the effects of site contamination on residential property values in Northwest Louisiana, a region well‐known for having numerous environmental problems. The old Lincoln Creosote site is the focus of this study. Home sales data are examined in detail in an attempt to measure any effects on property values that result from homes being located on or near this remediated site. A hedonic pricing model is used to help evaluate the influence of housing and neighborhood variables on home prices. The model includes a dummy variable, whether or not the home is in a neighborhood located in a contaminated area, to estimate the effects of the contaminated site on property values.