An Economic Analysis Of Poorly Sited
Septic Systems
Author(s)
S. Vedachalam, F. H. Hitzhusen & K. M. Mancl
Abstract
Soil-based septic systems serve about one in every four households in the United
States. Proper design and quality of soil play an important role in the functioning
of such systems. Shallow soils in the state of Ohio do not support traditional leach
field systems that require a depth of 3 to 4 feet of soil for effective treatment
of domestic wastewater. Installation of such systems in areas with shallow or
saturated soils leads to incomplete treatment of organic and bacterial pollutants.
Untreated or partially treated wastewater not only affects the immediate residents,
but also contaminates the groundwater aquifer and the local watershed. Drinking
contaminated water could lead to illness and a subsequent decrease in the quality
of life, and a loss of property valuation. This study aims to isolate the effect of
poor site selection on the value of the property. The assessed sale price of 549
randomly selected properties in Licking County, Ohio was analyzed and compared
across various structural, community and environmental factors. Results indicate
that properties sited on soils that are deemed optimal for wastewater treatment
are valued, on average, $15,752 higher than those sited on sub-optimal soils. The
results from this study would not only help the property owners in making better
private decisions regarding installation of septic systems, but would also guide
policy decisions that affect public health and common waters.
Keywords: septic systems, soil quality, property valuation, hedonic analysis, Ohio.
Keywords
septic systems, soil quality, property valuation, hedonic analysis, Ohio
Related Book
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