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Environmental risk and differentiated housing values: Evidence from the north of France

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  • Lavaine, Emmanuelle

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.

Suggested Citation

  • Lavaine, Emmanuelle, 2019. "Environmental risk and differentiated housing values: Evidence from the north of France," Journal of Housing Economics, Elsevier, vol. 44(C), pages 74-87.
    • Handle: RePEc:eee:jhouse:v:44:y:2019:i:c:p:74-87
    DOI: 10.1016/j.jhe.2019.02.001
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    3. Jason R. Bailey & W. Brent Lindquist & Svetlozar T. Rachev, 2024. "Hedonic Models Incorporating Environmental, Social, and Governance Factors for Time Series of Average Annual Home Prices," JRFM, MDPI, vol. 17(8), pages 1-17, August.
    4. Syed Hasan & Odmaa Narantungalag, & Martin Berka, 2022. "No pain, no gain? Mining pollution and morbidity," Discussion Papers 2203, School of Economics and Finance, Massey University, New Zealand.
    5. Jason R. Bailey & W. Brent Lindquist & Svetlozar T. Rachev, 2024. "Hedonic Models Incorporating ESG Factors for Time Series of Average Annual Home Prices," Papers 2404.07132, arXiv.org.
    6. Agarwal, Sumit & Ding, Yanhao & Kuang, Weida & Zhu, Xiao, 2023. "Are environmental punishments good news or bad news? Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).

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