How Does Local Real Estate Investment Influence Neighborhood PM 2.5 Concentrations? A Spatial Econometric Analysis

Hongjie Bao, Ling Shan, Yufei Wang, Yuehua Jiang, Cheonjae Lee and Xufeng Cui
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Hongjie Bao: School of Management, Northwest Minzu University, Lanzhou 730030, China
Ling Shan: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Yufei Wang: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Yuehua Jiang: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Cheonjae Lee: TUM School of Engineering & Design, Technical University of Munich (TUM), 80333 Munich, Germany
Xufeng Cui: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China

Land, 2021, vol. 10, issue 5, 1-21

Abstract: Real estate investment has been an important driving force in China’s economic growth in recent years, and the relationship between real estate investment and PM 2.5 concentrations has been attracting widespread attention. Based on spatial econometric modelling, this paper explores the relationships between real estate investment and PM 2.5 concentrations using multi-source panel data from 30 provinces in China between 1987 and 2017. The results demonstrate that compared with static spatial panel modelling, using a dynamic spatial Durbin lag model (DSDLM) more accurately reflects the influences of real estate investment on PM 2.5 concentrations in China, and that PM 2.5 concentrations show significant superposition effects and spillover effects. Moreover, there is an inverted U-shaped relationship between real estate investment and PM 2.5 concentrations in the Eastern and Central Regions of China. At the national level, the impacts of real estate investment on land urbanization and PM 2.5 concentrations first increased and then decreased over time. The key implications of this analysis are as follows. (1) it highlights the need for a unified PM 2.5 monitoring platform among Chinese regions; (2) the quality of population urbanization rather than land urbanization should be given more attention; and (3) the speed of construction of green cities and building of green transportation systems and green town systems should be increased.

Keywords: real estate investment; PM 2.5 concentrations; spatial econometric model; dynamic spatial durbin lag model (DSDLM) (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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