Are green lots worth more than brown lots? An economic incentive for erosion control on residential developments

M. Herzog; J. Harbor; K. McClintock; J. Law; K. Bennett

ABSTRACT:

Construction sites are major contributors to nonpoint source (NPS) pollution. However, a lack of personnel to enforce erosion control regulations and limited voluntary compliance means that few developers apply effective erosion control. New approaches are needed to increase erosion control on construction sites if this source of NPS pollution is to be significantly reduced. This study tests whether an economic advantage mists for developers who use vegetative cover for erosion control, independent of advantages gained in addressing environmental or regulatory concerns. Improving residential lat appearance from muddy brown to green grass may increase the appeal of the lot to buyers. A market survey shows that homebuyers and realtors perceive vegetated lots to be worth more than unvegetated lots, and this increased value exceed the cost of seeding. Thus, developers can now be encouraged to invest in vegetative cover because of the potentially high return on the investment.

Footnotes

Martha Herzog and Jon Harbor are with the Department of Earth and Atmospheric Sciences, and Kara Bennett is with the Department of Statistics, Purdue University, West Lafayette, Ind.; Keith McClintock is with the Geauga Soil and Water Conservation District, Burton, Ohio; and John Law is with the Indiana Department of Natural Resources, and Saint Joseph Soil and Water Conservation District, South Bend, Ind. The authors gratefully acknowledge funding from the Great Lakes Basin Program for Erosion and Sediment Control, and participation of numerous realtors, homebuyers, and developers who participated in the survey. They also appreciate the comments of three anonymous reviewers, who helped improve presentation of their results.
Copyright 2000 by the Soil and Water Conservation Society

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