A hedonic analysis of combined sewer overflows (CSOs) in Northern New Jersey

Significant water pollution caused by flooding due to heavy precipitation and extreme weather events has become a considerable problem, and changing weather patterns and sea level rise attributable to global climate change stand to further exacerbate the issue. During heavy precipitation events, combined stormwater and untreated sewage may be diverted to adjacent water bodies via combined sewer overflows (CSOs), resulting in contamination and water pollution that can be harmful to human and environmental health. Though water quality effects of CSO discharges have been studied, the socio-economic aspects of this infrastructure have not received much scientific attention. This study provides an analysis of the socio-economic impacts from the continued use of CSOs in the communities of Elizabeth, Newark, and Paterson in northern New Jersey through a hedonic analysis of disamenity value for residential properties near CSOs. We use GSMLS real estate data and county MOD-IV data in a GIS overlay to map residences and household, neighborhood, and environmental attributes in these urban New Jersey areas. We then use the data from GIS analysis in logistic regressions to analyze the significance of a number of these attributes, including proximity to the nearest CSO, and estimate the economic effect that each factor has on a residence’s sale price. This information is critical for revealing the socio-economic consequences of continued CSO operation, and can be used to inform CSO management strategies, including the use of green infrastructure, to understand economic impacts and intuit public perceptions of various strategies. • Distance to CSOs was found to have an amenity value for surrounding households • Environmental variables including distance to waterways and parks had amenity values • Desirability of water may override negative effects of CSOs in property values