The dynamic response of housing values to a forest invasive disease: evidence from a sudden oak death infestation

  • Authors: Kovacs, Kent; Holmes, Thomas P; Englin, Jeffrey E; Alexander, Janice
  • Publication Year: 2011
  • Publication Series: Scientific Journal (JRNL)
  • Source: Environmental and Resource Economics 49(3):445-471
  • DOI: 10.1007/s10640-010-9441-y

Abstract

“Sudden Oak Death” (Phytophthora ramorum) is a non-indigenous forest pathogen which causes substantial mortality of coast live oak (Quercus agrifolia) and several other oak tree species on the Pacific Coast of the United States. We estimated the time path of residential property values subject to oak mortality using a dataset that spans more than two decades—including a decade of transactions before-and-after the invasion. The findings suggest moderate, persistent property value discounts (3–6%) for homes located near infested oak woodlands subject to continuous post-invasion declines in forest health. The most severe discounts (8–15%) occurred where dying oaks were distributed both within residential neighborhoods and in nearby woodlands. Various hedonic modeling specifications were tested and compared to assess their ability to control for bias associated with unobserved spatial effects.

  • Citation: Kovacs, Kent; Holmes, Thomas P; Englin, Jeffrey E; Alexander, Janice 2011. The dynamic response of housing values to a forest invasive disease: evidence from a sudden oak death infestation. Environmental and Resource Economics 49(3):445-471.
  • Keywords: Difference-in-differences, spatial hedonic, invasive diseases, sudden oak death
  • Posted Date: September 13, 2011
  • Modified Date: September 26, 2011
  • Print Publications Are No Longer Available

    In an ongoing effort to be fiscally responsible, the Southern Research Station (SRS) will no longer produce and distribute hard copies of our publications. Many SRS publications are available at cost via the Government Printing Office (GPO). Electronic versions of publications may be downloaded, printed, and distributed.

    Publication Notes

    • This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
    • Our online publications are scanned and captured using Adobe Acrobat. During the capture process some typographical errors may occur. Please contact the SRS webmaster if you notice any errors which make this publication unusable.
    • To view this article, download the latest version of Adobe Acrobat Reader.