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Geostatistical Air Pollution Indexes in Spatial Hedonic Models: The Case of Madrid, Spain

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  • Gema Fernández-Avilés
  • Román Mínguez,
  • José-María Montero

Abstract

Recent work has shown how spatial econometrics can be applied to a housing-value hedonic equation that includes air pollution variables. This paper develops a Spatial Durbin Model that incorporates an Air Pollution Index, instead of one or two pollution variables, and considers spatial and non-spatial endogeneity jointly. Exogenous and endogenous possibilities are considered for the index. The empirical analysis focuses on a European city, Madrid. A massive database was constructed for the analysis in 2009 that includes almost 12,000 dwellings.

Suggested Citation

  • Gema Fernández-Avilés & Román Mínguez, & José-María Montero, 2012. "Geostatistical Air Pollution Indexes in Spatial Hedonic Models: The Case of Madrid, Spain," Journal of Real Estate Research, Taylor & Francis Journals, vol. 34(2), pages 243-274, January.
    • Handle: RePEc:taf:rjerxx:v:34:y:2012:i:2:p:243-274
    DOI: 10.1080/10835547.2012.12091330
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