When power plants leave town: Environmental quality and the housing market in China
Air pollution is a major environmental issue in China. This paper exploits the relocation of two major power plants in a large Chinese city as a quasi-natural experiment to examine the effect of changes in the quality of the environment on the housing market. We use an extensive transaction dataset...
| Autores principales: | , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Springer
2020
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/142506 |
| _version_ | 1855525867571118080 |
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| author | Deng, Guoying Hernandez, Manuel A. Xu, Shu |
| author_browse | Deng, Guoying Hernandez, Manuel A. Xu, Shu |
| author_facet | Deng, Guoying Hernandez, Manuel A. Xu, Shu |
| author_sort | Deng, Guoying |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Air pollution is a major environmental issue in China. This paper exploits the relocation of two major power plants in a large Chinese city as a quasi-natural experiment to examine the effect of changes in the quality of the environment on the housing market. We use an extensive transaction dataset of new apartment units in the affected and neighboring areas. We find that the plants’ closure is associated with a 12–14% increase in prices and 13–31% rise in the volume of transactions in neighborhoods within five kilometers of the plants. We further observe a higher change in prices among more expensive houses. The estimated monthly aggregate effect of the closures on the local housing market is over 50 million US dollars during the first 2 years after the relocations. |
| format | Journal Article |
| id | CGSpace142506 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | Springer |
| publisherStr | Springer |
| record_format | dspace |
| spelling | CGSpace1425062025-12-08T10:06:44Z When power plants leave town: Environmental quality and the housing market in China Deng, Guoying Hernandez, Manuel A. Xu, Shu housing power plants environment markets air pollution Air pollution is a major environmental issue in China. This paper exploits the relocation of two major power plants in a large Chinese city as a quasi-natural experiment to examine the effect of changes in the quality of the environment on the housing market. We use an extensive transaction dataset of new apartment units in the affected and neighboring areas. We find that the plants’ closure is associated with a 12–14% increase in prices and 13–31% rise in the volume of transactions in neighborhoods within five kilometers of the plants. We further observe a higher change in prices among more expensive houses. The estimated monthly aggregate effect of the closures on the local housing market is over 50 million US dollars during the first 2 years after the relocations. 2020-10-01 2024-05-22T12:10:36Z 2024-05-22T12:10:36Z Journal Article https://hdl.handle.net/10568/142506 en https://doi.org/10.2139/ssrn.2502442 Open Access Springer Deng, Guoying; Hernandez, Manuel A.; and Xu, Shu. 2020. When power plants leave town: Environmental quality and the housing market in China. Environmental and Resource Economics 77: 751–780. https://doi.org/10.1007/s10640-020-00517-x |
| spellingShingle | housing power plants environment markets air pollution Deng, Guoying Hernandez, Manuel A. Xu, Shu When power plants leave town: Environmental quality and the housing market in China |
| title | When power plants leave town: Environmental quality and the housing market in China |
| title_full | When power plants leave town: Environmental quality and the housing market in China |
| title_fullStr | When power plants leave town: Environmental quality and the housing market in China |
| title_full_unstemmed | When power plants leave town: Environmental quality and the housing market in China |
| title_short | When power plants leave town: Environmental quality and the housing market in China |
| title_sort | when power plants leave town environmental quality and the housing market in china |
| topic | housing power plants environment markets air pollution |
| url | https://hdl.handle.net/10568/142506 |
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