Effect of air pollution on house prices: Evidence from sanctions on Iran

Amirhossein Amini, Kaveh Nafari and Ruchi Singh

Regional Science and Urban Economics, 2022, vol. 93, issue C

Abstract: We analyze the causal effect of air pollution on Iran's housing market by exploiting increases in air pollution due to sanctions that targeted gasoline imports. In response to the sanctions, Iran converted petrochemical plants into refineries that produced low-quality gasoline, which led to a drastic and heterogeneous increase in air pollution across neighborhoods in Tehran. Using unique administrative data on Tehran's housing market, we estimate a fixed effects model that exploits this variation in air pollution and compares housing values within neighborhoods over time. We find that a 10 ​% increase in the outdoor concentration of nitrogen dioxide leads to a decrease in housing prices of around 0.6 ​%–0.8 ​%.

Keywords: Air quality; Housing market; Iran; Nitrogen dioxide; Sanctions (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0166046221000806
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:93:y:2022:i:c:s0166046221000806

DOI: 10.1016/j.regsciurbeco.2021.103720

Access Statistics for this article

Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou

More articles in Regional Science and Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().