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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 ESG Factors for Time Series of Average Annual Home Prices," Papers 2404.07132, arXiv.org.
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    5. Biao Sun & Shan Yang, 2020. "Asymmetric and Spatial Non-Stationary Effects of Particulate Air Pollution on Urban Housing Prices in Chinese Cities," IJERPH, MDPI, vol. 17(20), pages 1-23, October.
    6. 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.

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