skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Does Air Quality Matter? Evidence from the Housing Market

The Journal of political economy, 2005-04, Vol.113 (2), p.376-424 [Peer Reviewed Journal]

2005 by The University of Chicago. All rights reserved. ;Copyright University of Chicago, acting through its Press Apr 2005 ;ISSN: 0022-3808 ;EISSN: 1537-534X ;DOI: 10.1086/427462 ;CODEN: JLPEAR

Digital Resources/Online E-Resources

Citations Cited by
  • Title:
    Does Air Quality Matter? Evidence from the Housing Market
  • Author: Chay, Kenneth Y. ; Greenstone, Michael
  • Subjects: Air pollutants ; Air pollution ; Air quality ; Airborne particulates ; Censuses ; Clean Air Act-US ; Consumers ; Counties ; Dwelling value ; Econometrics ; Economic value ; Elasticity ; Estimation bias ; Housing ; Housing market ; Housing prices ; Instrumental variables ; Instrumental variables estimation ; Outdoor air quality ; Political economy ; Pollution ; Prices ; Regulation ; Studies ; U.S.A
  • Is Part Of: The Journal of political economy, 2005-04, Vol.113 (2), p.376-424
  • Description: We exploit the structure of the Clean Air Act to provide new evidence on the capitalization of total suspended particulates (TSPs) air pollution into housing values. This legislation imposes strict regulations on polluters in “nonattainment” counties, which are defined by concentrations of TSPs that exceed a federally set ceiling. TSPs nonattainment status is associated with large reductions in TSPs pollution and increases in county‐level housing prices. When nonattainment status is used as an instrumental variable for TSPs, we find that the elasticity of housing values with respect to particulates concentrations ranges from −0.20 to −0.35. These estimates of the average marginal willingness to pay for clean air are robust to quasi‐experimental regression discontinuity and matching specification tests. Further, they are far less sensitive to model specification than cross‐sectional and fixed‐effects estimates, which occasionally have the “perverse” sign. We also find modest evidence that the marginal benefit of reductions of TSPs is lower in communities with relatively high pollution levels, which is consistent with preference‐based sorting. Overall, the improvements in air quality induced by the mid‐1970s TSPs nonattainment designation are associated with a $45 billion aggregate increase in housing values in nonattainment counties between 1970 and 1980.
  • Publisher: Chicago: The University of Chicago Press
  • Language: English
  • Identifier: ISSN: 0022-3808
    EISSN: 1537-534X
    DOI: 10.1086/427462
    CODEN: JLPEAR
  • Source: Education Resources Information Center (ERIC)
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait