Work

Impact of waterborne E. coli outbreaks on local communities: evidence from housing transactions in Michigan

Year: 2024

Type: article

Abstract: Waterborne Escherichia coli (E. coli) represents a pervasive water quality problem across the United States. In Michigan, the presence of E. coli has become problematic for many areas where agricultural run-off and ineffective policies have made these outbreaks endemic. Combining the universe of housing transaction datasets from 2009 to 2017 with the State of Michigan water sampling dataset, we investigate and quantify the negative impacts of E. coli outbreaks on local housing prices. Our difference-in-differences model estimates an overall impact of −8.94% for houses in the treatment group relative to the control group. However, this effect is only short term, as sales prices recover after the outbreak has ended.

Source: Agricultural and Resource Economics Review

DOI: 10.1017/age.2024.13

Authors: Marcello Graziano, Pengfei Liu, Kevin Meyer, Wendong Zhang

Institutions: Ruralis - Institute for Rural and Regional Research, University of Rhode Island, Saginaw Valley State University, Cornell University

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Clean water and sanitation, Good health and well-being, Sustainable cities and communities

Open Access status: gold

Estimated APC paid: $1,720