Abstract
Since 2013, the state has used CalEnviroScreen to guide the allocation of more than $9 billion dollars of cap-and-trade revenue to mitigate environmental harm through the deployment of cleaner technologies, tree planting, transit expansion, and more, with a particular emphasis on places disproportionately impacted by pollution and at a socioeconomic disadvantage as compared to the rest of the California. In this thesis, I sought to explore whether pollution as measured by CalEnviroScreen negatively impacts housing prices and the potential to mitigate such impacts through targeted government interventions to support economic development. I took a mixed-method approach conducting a regression analysis and then I interviewed four subject matter experts working in California environmental policy. Using the Metrolist Multiple Listings Service and CalEnviroScreen as my sources, my regression analysis evaluated the effect of following indicators on the price of Sacramento County residential properties sold in 2016: pollution exposure, pollution effects, and property and neighborhood characteristics. My results showed the CalEnviroScreen pollution indicators to have little negative effect with the exception of traffic density which I found to have a statistically significant negative effect on selling price translating to a $22,395 decrease in the selling price of single-family homes in areas with high traffic density. My interviews with experts revealed a positive perception of CalEnviroScreen, acknowledgment that the tool is in a continuous improvement process, and openness to expanding its use to support economic development in disadvantaged areas that is centered on community needs and decision-making. Based on my findings, I recommend the state continue its investment in and use of CalEnviroScreen for targeted pollution mitigation in disadvantaged areas including exploring creative new efforts that build community capacity as a core aspect of economic development strategies. Additionally, policymakers should evaluate the value of public disclosure to increase awareness of environmental risk and public support for clean up or mitigation efforts.