The Price of Pollution and Health

Emmanuelle Lavaine

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Abstract: This paper examines the impact of a reduction in sulfur dioxide concentration (SO2)in France on both health outcomes and property prices, at a municipality level, from2008 to 2011. The paper aims to compare people's willingness to pay for perceiveddifferences in environmental attributes and the real cost in terms of health they are ex-posed to. To do so, I conduct a hedonic price method analysis using the recent closureaffecting one oil refinery in the north of France, in September 2009, as a natural experi-ment. This contribution shows, first, that a long term shut down in the refining processleads to a reduction in sulfur dioxide concentration. I then use this exogenous shockto assess the impact of a change in air pollution concentration on hospital respiratoryadmission and property prices. The estimates suggest that the hedonic approach maynot always reflect the true environmental health risks.

Date: 2015-10-05
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Published in 12e session RUES : Environmental amenities, migration and housing prices, Paris School of Economics, Oct 2015, Paris, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02048569

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