Abandoned Industrial Areas with Critical Environmental Pollution: Evaluation Model and Stigma Effect

Vincenzo Del Giudice,Francesco Paolo Del Giudice,Paolo Bevilacqua,Alessio Pino,Pierfrancesco De Paola

doi:10.3390/su12135267

Vincenzo Del Giudice, Francesco Paolo Del Giudice + Show 3 more

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https://doi.org/10.3390/su12135267

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Abstract

The paper illustrates the phases and results of an evaluation model applied to abandoned industrial areas affected by critical environmental pollution. The main aim is to provide the economic evaluation of the impacts of critical environmental pollution on the market value of the areas, in anticipation of their future requalification and refunctionalization. Firstly, two mass appraisal models are applied: a regressive model in order to isolate the effects of real estate valorization generated by the requalification interventions of the abandoned steel mill areas of Bagnoli in Naples (Italy); an autoregressive model in relation to the chronology of the interventions and the real estate market dynamics, in order to predict values and costs of the building products to be realized on the areas. Subsequently, using the Ellwood model, the irreversible damage suffered by the areas in question due to the effect of critical environmental pollution is estimated. This irreversible damage corresponds to a “stigma” effect, or a loss to property value due to the presence of a risk perception-driven market resistance: for the abandoned steel mill areas of Bagnoli the reduction in the market value is equal to 28.63% approximately. The state of contamination of the areas is also described, estimating the related environmental remediation costs as a “deduction” to be applied to the “capital value” of the areas.

Highlights

IntroductionThe history of the industrialization of the city of Naples is characterized by the “drama” that the relationship between industry and territory has assumed in the western area, in regard to the abandoned steel plant called ex-”Italsider” or “Ilva”
The development, rationalization, reuse and conversion of the industrial fabric play a fundamental role in urban transformation processes.The history of the industrialization of the city of Naples is characterized by the “drama” that the relationship between industry and territory has assumed in the western area, in regard to the abandoned steel plant called ex-”Italsider” or “Ilva”
In order to correctly apply the method, it is necessary to take as a reference a time line chart of transformation interventions and sales, which indicates the percentage of realization of the interventions, allowing to distribute costs and incomes over time

Summary

Introduction

The history of the industrialization of the city of Naples is characterized by the “drama” that the relationship between industry and territory has assumed in the western area, in regard to the abandoned steel plant called ex-”Italsider” or “Ilva” This wound in the city has greatly marked the evolution of the reflection on the relationship between city and industry. These industrial areas can play a strategic role in territorial development, in relation to the economic growth of the urban area, and in relation to its territorial rebalancing, and to the creation of new territorial connections based on polycentrism, to the requalification of the peripheral areas, to the safeguard of the natural environment [1]. The question of the reuse of abandoned industrial areas has its own characteristics, and can be divided into a series of quite diversified possibilities, often deeply linked to the specific characteristics of the territories in which they are located [2]

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