 Particulate air pollution and real estate valuation: Evidence from 286 Chinese prefecture-level cities over 2004–2013Dengke Chen and Shiyi Chen Energy Policy, 2017, vol. 109, issue C, 884-897 Abstract: Whether, and to what extent the air pollutions depress the real estate prices in China have increasingly become to be important issues yet to be well addressed. By applying a very unique panel data set on PM2.5 concentrations from 286 Chinese prefecture-level cities for 2004–2013, this study quantitatively assesses the impact of PM2.5 concentrations on real estate prices in China. The preferred empirical results demonstrate that: (1) PM2.5 pollutions have negatively significant effects on real estate prices in China. Specifically, 1μg/m3 increase in PM2.5 concentrations is associated with a decrease of 46RMB/m2 in real estate prices on average. (2) The estimated effects differ widely across Chinese cities, with higher-ranking cities being more substantially impacted. Additionally, the negative effects become increasingly statistically significant and quantitatively large over time. (3) Finally, 1μg/m3 increase in PM2.5 is responsible for about 5200 hundred million RMB losses in real estate valuations, approximately accounting for 0.9% GDP in 2013 of China. The findings are rather robust to various alternative settings. Keywords: Q53; Q51; L85; PM2.5 pollution; Real estate prices; Chinese prefecture-level cities (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:109:y:2017:i:c:p:884-897 DOI: 10.1016/j.enpol.2017.05.044 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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