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Proud of, but too close: the negative externalities of a new sports stadium in an urban residential area

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  • Dongwoo Hyun

    (Dankook University)

Abstract

Sports facilities have been found to generate positive externalities over negative ones, so empirical studies report residential property prices increase near these facilities. This study investigates the effect of a new baseball stadium on housing values using a case which is deemed to induce negative externalities overwhelmingly due to the case-specific characteristics. Employing a difference-in-differences (DID) approach on data reflecting over 17,000 apartment transactions, this study finds a significant price depreciation within 2 km from a new stadium by up to approximately 7% after its opening. The spatial variation in price changes presents a clear distance decaying pattern, implying that the price effects are closely associated with negative externalities such as light pollution, noise, and traffic congestion. All of which would obviously fade away being further from the origin, the stadium.

Suggested Citation

  • Dongwoo Hyun, 2022. "Proud of, but too close: the negative externalities of a new sports stadium in an urban residential area," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 615-633, June.
    • Handle: RePEc:spr:anresc:v:68:y:2022:i:3:d:10.1007_s00168-021-01095-6
    DOI: 10.1007/s00168-021-01095-6
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    References listed on IDEAS

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    1. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2014. "Form or function?: the effect of new sports stadia on property prices in London," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(1), pages 169-190, January.
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    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
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    11. Xia Feng & Brad Humphreys, 2018. "Assessing the Economic Impact of Sports Facilities on Residential Property Values," Journal of Sports Economics, , vol. 19(2), pages 188-210, February.
    12. Gabriel Ahlfeldt & Wolfgang Maennig, 2009. "Arenas, Arena Architecture and the Impact on Location Desirability: The Case of `Olympic Arenas' in Prenzlauer Berg, Berlin," Urban Studies, Urban Studies Journal Limited, vol. 46(7), pages 1343-1362, June.
    13. Georgios Kavetsos, 2012. "The Impact of the London Olympics Announcement on Property Prices," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1453-1470, May.
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    Cited by:

    1. Tsai, I-Chun, 2024. "A wise investment by urban governments: Evidence from intelligent sports facilities," Journal of Asian Economics, Elsevier, vol. 92(C).

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