The effect of soil contamination on real estate value: a hedonic pricing approach based on different risk measures

Abstract

The aim of this doctoral thesis is an attempt to work multidisciplinary. This means that several fields of research will be interconnected, i.e. we will try to look for a link between the results of site research, epidemiological research and economic research. It is our intention with this research to reveal the effect of changes in the environment on social welfare, more specifically translated in following general research question: How do different risk measures of soil pollution affect the social benefit estimates of a potential soil remediation program? We will first develop a theoretical framework in which soil pollution will be treated in this dissertation. Therefore, we define three important subquestions. Subquestion 1. What are different measures of risk coming from soil pollution? Subquestion 2. What is an appropriate economic benefit framework to analyze soil pollution? Subquestion 3. How are the different measures of risk integrated in a benefit estimation model? The three subquestions will be treated subsequently in chapters two, three and four. Using the insights of the theoretical analysis, we will also develop an appropriate empirical research strategy in chapter four. The empirical research will test the influence of several risk measures on benefit estimates of potential soil remediation programs. We will conduct the empirical research in chapters five to seven. Chapter eight will finally conclude the analysis of this doctoral dissertation.