Environmental risk and differentiated housing values

Emmanuelle Lavaine ()
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Emmanuelle Lavaine: CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: Most of the hedonic literature treats the housing market as a single geographical entity. We use a database with precise information on home characteristics at a property level to show that this is not always correct. We also exploit a refinery closure to address locational sorting and all other unobserved attributes. Refinery closure is associated with an approximately 1.5 µg per cubic metre decrease in SO2 air pollution, and refinery closure leads to a 6.7% increase in property values with at least 5 rooms or a benefit of approximately 457 million for these households; however, it leads to 28% declines in property values in Dunkirk with one room or a loss of approximately 1 billion for these households.

Keywords: hedonic price analysis; atmospheric pollution; difference in difference (search for similar items in EconPapers)
Date: 2019
Note: View the original document on HAL open archive server: https://hal.science/hal-02048712v1
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Citations: View citations in EconPapers (2)

Published in Journal of Housing Economics, 2019, 44, pp.74-87. ⟨10.1016/j.jhe.2019.02.001⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02048712

DOI: 10.1016/j.jhe.2019.02.001

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