 |
| The Valuation of Contaminated Land Author: Bruce R. Weber Start Page: 379 Abstract: This paper presents a Monte Carlo based method for explicitly
accounting for uncertainty in the valuation of contaminated property. Environmental risk
is being quantified by the scientific methods described in this paper. Financial risk is
also quantifiable by these techniques. A 1993 Supreme Court case known as Daubert has
changed the admission requirements for scientific evidence by expert witnesses. Hoyt
(1997) notes that it is "imperative that real estate appraisers who testify be sure
that their scientific evidence will stand up to the scrutiny of Daubert of their testimony
may be rejected." A scientific method of quantifying the unique financial risk of
this type of asset is used for the valuation of contaminated land. |
