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The Heterogeneous Effect and Transmission Paths of Air Pollution on Housing Prices: Evidence from 30 Large- and Medium-Sized Cities in China

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  • Liu Guangping

    (School of Economics and Management, Hebei University of Technology, Tianjin, China)

  • Zhang Guo

    (School of Economics and Management, Hebei University of Technology, Tianjin, China)

  • Li Yanfei

    (School of Management, Tianjin University of Technology, Tianjin, China)

  • Yu Yang

    (School of Artificial Intelligence, Hebei University of Technology, Tianjin, China)

Abstract

Utilizing panel data from 30 large- and medium-sized cities in China from 2003 to 2018, this study employs the bootstrap method to investigate the heterogeneous impact of air pollution on housing prices and its underlying mechanisms. The research findings indicate that an increase in the concentration of various air pollutants has a restraining effect on housing prices, with the primary components of haze exerting a greater influence. Air pollution indirectly affects housing prices by influencing urban economic development and the development of the tertiary industry, with population density and the development of the secondary industry not serving as mediators in this relationship. Finally, policy recommendations are provided, including enhancing mandatory standards for energy consumption and waste gas emissions by enterprises, establishing a robust environmental monitoring system, and promoting industrial transformation and upgrading, aiming to provide insights for the stable development of the real estate industry.

Suggested Citation

  • Liu Guangping & Zhang Guo & Li Yanfei & Yu Yang, 2024. "The Heterogeneous Effect and Transmission Paths of Air Pollution on Housing Prices: Evidence from 30 Large- and Medium-Sized Cities in China," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-17.
    • Handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:17:n:1036
    DOI: 10.1515/econ-2022-0093
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    References listed on IDEAS

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    1. Jie Chen & Qianjin Hao & Chamna Yoon, 2018. "Measuring the welfare cost of air pollution in Shanghai: evidence from the housing market," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(10), pages 1744-1757, August.
    2. Emanuele Massetti & Robert Mendelsohn, 2011. "Estimating Ricardian Models With Panel Data," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 301-319.
    3. Arief Anshory Yusuf & Budy P. Resosudarmo, 2006. "Assessing the Value of Clean Air in a Developing Country: A Hedonic Price Analysis of the Jakarta Housing Market, Indonesia," Economics and Environment Network Working Papers 0601, Australian National University, Economics and Environment Network.
    4. Le Boennec, Rémy & Salladarré, Frédéric, 2017. "The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France," Ecological Economics, Elsevier, vol. 138(C), pages 82-89.
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