The impact of hazardous industrial facilities on housing prices: A comparison of parametric and semiparametric hedonic price models

Celine Grislain-Letremy and Arthur Katossky

Regional Science and Urban Economics, 2014, vol. 49, issue C, 93-107

Abstract: The willingness of households to pay for prevention against industrial risks can be revealed by real estate markets. By using very rich microdata, we study housing prices in the vicinity of hazardous industries near three important French cities. We show that the impact of hazardous plants on the housing values strongly differs among these three areas, even if the areas all surround chemical and petrochemical industries. We compare the results from both standard parametric and more flexible, semiparametric models of hedonic property. We show that the parametric model might structurally lead to important biases in the estimated value of the impact of hazardous plants on housing values.

Keywords: Hedonic analysis; Conditionally parametric regression; Urban housing markets; Industrial risk (search for similar items in EconPapers)
JEL-codes: C21 Q51 R21 R52 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: The Impact of Hazardous Industrial Facilities on Housing Prices: A Comparison of Parametric and Semiparametric Hedonic Price Models (2014)
Working Paper: The Impact of Hazardous Industrial Facilities on Housing Prices: A Comparison of Parametric and Semiparametric Hedonic Price Models (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:49:y:2014:i:c:p:93-107

DOI: 10.1016/j.regsciurbeco.2014.09.002

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