Disparities in Pollution Capitalization Rates: The Role of Direct & Systemic Discrimination

Joshua Graff Zivin and Gregor Singer

No 11555, CESifo Working Paper Series from CESifo

Abstract: We examine how exogenous changes in exposure to air pollution over the past two decades have altered the disparities in home values between Black and White homeowners. We find that air quality capitalization rates are significantly lower for Black homeowners. In fact, they are so much lower that, despite secular reductions in the Black-White pollution exposure gap, disparities in housing values have increased during this period. An exploration of mechanisms suggests that roughly two-thirds of this difference is the result of direct discrimination while the remaining one-third can be attributed to systemic discrimination.

Keywords: house prices; environmental justice; air pollution; race; discrimination (search for similar items in EconPapers)
JEL-codes: J15 Q51 R30 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11555

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