Why Participate? The Texas Voluntary Cleanup Program in Dallas

The remediation and redevelopment of brownfields are important for achieving sustainable neighborhoods. Voluntary cleanup programs (VCPs) have been established by most states as the principal tool for brownfield redevelopment. Therefore, it is important to understand what site and neighborhood characteristics make it more likely for brownfield property owners to participate. We provide policy-makers with more information with which to adjust the focus of this widely-used mechanism. We investigate the factors that determine participation in VCPs. We ask the question: What site and neighborhood characteristics prompt property owners to apply to the program? This question is addressed by conducting a single-market analysis in Dallas, Texas; using geographic information systems (GIS) based methods to analyze each brownfield site at the parcel level to determine VCP participation characteristics. A stratified duration model is estimated using 13,295 parcels (620 entered the VCP program). Important implications are uncovered regarding what is likely to motivate a property owner of a contaminated site to participate and impact the surrounding neighborhood. As a whole, our findings suggest that the Texas VCP is successful for Dallas properties that are already attractive for redevelopment and are located in the healthier areas of the city; the program is not equally or equitably distributed. We also discover that concurrent economic incentive programs have a strong influence on VCP participation. Finally, the presence of other VCPs within close proximity to a contaminated site encourages participation when coupled with high development potential as exhibited by large projects; this may prove to be a tool for public agencies in encouraging participation. This research suggests that layered incentives create a supportive environment for brownfield remediation when linked to positive economic redevelopment potential. JEL Codes: Q58, K32 SER