Economic Effects of Environmental Crises: Evidence from Flint, Michigan

• 成果类型: Article
• 署名作者: Christensen, Peter; Keiser, David A.; Lade, Gabriel E.
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; University of Massachusetts System; University of Massachusetts Amherst; Macalester College
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20190391
• 发表日期: 2023
• 页码: 196-232
• 关键词: blood lead levels; information disclosure; avoidance-behavior; housing values; water crisis; HEALTH; RISK; IMPACT; mortality; disaster

摘要

In April 2014 Flint, Michigan switched its drinking water supply from the Detroit water system to the Flint River as a temporary means to save $5 million. Over 18 months it was revealed that the switch exposed residents to dangerous levels of lead, culminating in an emergency declaration in October 2015. This paper examines the impact of this crisis on the Flint housing market. The value of Flint's housing stock has fallen by $520 million to $559 million despite over $400 million in remediation spending. Home prices remain depressed through August 2019, 16 months after the water was declared safe for consumption. (JEL H12, I12, Q25, Q51, Q53, R31)