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Housing Environmental Risk in Urban Areas: Cross Country Comparison and Policy Implications

Bruno Chiarini (), Antonella D'Agostino, Elisabetta Marzano and Andrea Regoli

No 6822, CESifo Working Paper Series from CESifo Group Munich

Abstract: The main aim of this paper is to assess whether there is a statistically significant environmental impact of cities within European countries. Second, starting from the estimated environmental impact of cities within European countries, the paper investigates whether cross-country variation can be explained by macro-economic factors and government policies which can play a role in mitigating such an impact. We start from individual evidence (EU-SILC data) to obtain a measure of the environmental impact of cities within countries, and then correlate the latter with macro variables to explain European heterogeneity. These estimates confirm that the environmental risk for households is particularly perceived in more densely populated urban agglomerations, although the marginal effects are quite heterogeneous between countries. Macroeconomic factors such as inequality, wealth, taxation and public spending on the environment, and macroeconomic constraints such as the public finance disequilibrium produce a strong heterogeneity between countries in determining the marginal effects of urban metropolises on household environmental risk.

Keywords: household environmental risk; sustainable cities; bivariate probit model; cross-country heterogeneity (search for similar items in EconPapers)
JEL-codes: Q51 Q53 R21 I31 C35 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env, nep-eur and nep-ure
Date: 2017
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