Drought and Property Prices: Empirical Evidence from Iran

Mohammad Reza Farzanegan (), Mehdi Feizi and Hassan Gholipour Fereidouni

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This study demonstrates an economic consequence of climate change and water crises in Iran. It examines the effect of drought on housing prices, residential land prices, and housing rents in Iran. Using data from provinces of Iran from 1993 to 2015 and applying static and dynamic panel fixed effects estimators, we find evidence that an increase in the balance of water (reducing the severity of drought) within provinces has a positive effect on property prices. Our results have important implications for Iranian policymakers and property investors.

Keywords: Drought; Water Crisis; Property Prices; Housing; Iran (search for similar items in EconPapers)
JEL-codes: Q54 R21 R31 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-agr, nep-ara, nep-cwa, nep-env and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201916

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