Willingness to pay for clean air: Evidence from quasi-experiment in Japan
No 285086, 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia from Australian Agricultural and Resource Economics Society (AARES)
Over the past decades ambient concentrations of suspended particulate matter (SPM) have dramatically reduced in metropolitan areas in Japan. This paper analyzes a property-level panel dataset for 1992-2015 to measure the extent to which the improved air quality was capitalized into residential land prices. Single-equation estimates show no evidence of the capitalization. To address potential endogeneity biases, I instrument SPM concentrations with municipalities’ designation status under the Automobile NOx/PM Law (ANPL), and find that the elasticity of residential land prices with respect to SPM concentration is -0.57. Using IV approach, I also find that the improvements in SPM concentrations increased inflows of migrations. These results are confirmed with a battery of robustness checks.
Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-ene and nep-ure
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://ageconsearch.umn.edu/record/285086/files/2 ... or%20clean%20air.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:aare19:285086
Access Statistics for this paper
More papers in 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia from Australian Agricultural and Resource Economics Society (AARES) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().