The Impact of Polluters' Cleanup on Land Values: Evidence From Pollution‐Intensive Industries in China

Xiaofang Dong and Zenghe Huang

Journal of Regional Science, 2025, vol. 65, issue 3, 603-627

Abstract: This study utilizes geocoded land transaction data and information on industrial polluting firms to examine the impact of pollution‐intensive firm cleanup on land values in China. Our findings reveal that land parcels with cleanup of at least one heavy polluting enterprise within a 2 km radius experienced a 15.2% increase in land prices compared to those without cleanup. This effect is more pronounced for parcels situated further from the central business district, designated for commercial use, and located in smaller noncapital cities. The emergence of new clean and high‐tech firms, along with population growth post‐cleanup, are identified as primary drivers behind the upward trend in land values. However, within 500 meters of a cleanup site, there can be adverse effects on adjacent land, although overall, cleanup boosts land values.

Date: 2025
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