The Impact of Hazardous Industrial Facilities on Housing Prices: A Comparison of Parametric and Semiparametric Hedonic Price Models

Celine Grislain-Letremy and Arthur Katossky ()

No 2014-13, Working Papers from Center for Research in Economics and Statistics

Abstract: The willingness of households to pay for prevention against industrial risks can be revealed by real estate markets. By using very rich microdata, we study housing prices in the vicinity of hazardous industries near three important French cities. We show that the impact of hazardous plants on the housing values strongly differs among these three areas, even if the areas all surround chemical and petrochemical industries. We compare the results from both standard parametric and more flexible, semiparametric models of hedonic property. We show that the parametric model might structurally lead to important biases in the estimated value of the impact of hazardous plants on housing values and in the variations of this impact with respect to the distance from the plants

Keywords: hedonic analysis; locally weighted regression; urban housing markets; industrial risk (search for similar items in EconPapers)
JEL-codes: C21 Q51 R21 R52 (search for similar items in EconPapers)
Pages: 36
Date: 2014-05
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://crest.science/RePEc/wpstorage/2014-13.pdf Crest working paper version (application/pdf)

Related works:
Journal Article: The impact of hazardous industrial facilities on housing prices: A comparison of parametric and semiparametric hedonic price models (2014)
Working Paper: The Impact of Hazardous Industrial Facilities on Housing Prices: A Comparison of Parametric and Semiparametric Hedonic Price Models (2014)
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:crs:wpaper:2014-13

Access Statistics for this paper

More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Murielle Jules Maintainer-Email : murielle.jules@ensae.Fr.