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The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France

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  • Rémy Le Boennec

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

  • Frédéric Salladarré

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

In this paper, we aim to demonstrate the way air pollution and noise may affect the well-being of the inhabitants of Nantes, France, designated the European Green Capital in 2013. We use a database compiling certain attributes of the houses that exchanged hands and their price. In order to understand the complex relationships that can exist between explanatory variables and housing price, we consider not only the direct effects of air pollution and noise on the price of around 3000 houses sold in Nantes and its metropolitan area from 2002 to 2008, but also the way some location attributes of the dwellings may affect air pollution and noise. We demonstrate that even if air pollution may be affected by some location characteristics of the house, this variable has no significant impact on the price, in the end. Noise is affected by the location of the house and exerts some significant effect on housing price. However, whilst air pollution does not impact at a global level, people who have lived in an air polluted county before coming to Nantes are sensitive to air quality, whereas those who come from a low air polluted county tend to choose low noise exposure dwellings.

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  • Rémy Le Boennec & Frédéric Salladarré, 2017. "The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France," Post-Print halshs-01615044, HAL.
    • Handle: RePEc:hal:journl:halshs-01615044
    DOI: 10.1016/j.ecolecon.2017.03.030
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01615044
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    Cited by:

    1. Higgins, Christopher D. & Adams, Matthew D. & Réquia, Weeberb J. & Mohamed, Moataz, 2019. "Accessibility, air pollution, and congestion: Capturing spatial trade-offs from agglomeration in the property market," Land Use Policy, Elsevier, vol. 84(C), pages 177-191.
    2. 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.
    3. León, Carmelo J. & Hernández-Alemán, Anastasia & Fernández-Hernández, Carlos & Araña, Jorge E., 2023. "Are rural residents willing to trade-off higher noise for lower air pollution? Evidence from revealed preferences," Ecological Economics, Elsevier, vol. 207(C).
    4. Rémy Le Boennec & Isabelle Nicolaï & Pascal da Costa, 2018. "Implementing a two-step decision-aid tool for the assessment of new mobility offers in a spatial framework," Post-Print halshs-01942700, HAL.
    5. Francisco Guijarro, 2019. "Assessing the Impact of Road Traffic Externalities on Residential Price Values: A Case Study in Madrid, Spain," IJERPH, MDPI, vol. 16(24), pages 1-13, December.
    6. Doan, Quang Cuong, 2023. "Determining the optimal land valuation model: A case study of Hanoi, Vietnam," Land Use Policy, Elsevier, vol. 127(C).
    7. Ramesh Chandra Das & Tonmoy Chatterjee & Enrico Ivaldi, 2022. "Nexus between Housing Price and Magnitude of Pollution: Evidence from the Panel of Some High- and-Low Polluting Cities of the World," Sustainability, MDPI, vol. 14(15), pages 1-18, July.
    8. Łukasz Warguła & Mateusz Kukla & Piotr Krawiec & Bartosz Wieczorek, 2020. "Reduction in Operating Costs and Environmental Impact Consisting in the Modernization of the Low-Power Cylindrical Wood Chipper Power Unit by Using Alternative Fuel," Energies, MDPI, vol. 13(11), pages 1-16, June.
    9. H. Allen Klaiber & Ulrich B. Morawetz, 2021. "The Welfare Impacts of Large Urban Noise Reductions: Implications from Household Sorting in Vienna," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(1), pages 121-146, January.
    10. Julie Bulteau & Thierry Feuillet & Rémy Le Boennec, 2018. "Spatial Heterogeneity of Sustainable Transportation Offer Values: A Comparative Analysis of Nantes Urban and Periurban/Rural Areas (France)," Post-Print halshs-01706911, HAL.
    11. Łukasz Warguła & Mateusz Kukla & Piotr Lijewski & Michał Dobrzyński & Filip Markiewicz, 2020. "Influence of Innovative Woodchipper Speed Control Systems on Exhaust Gas Emissions and Fuel Consumption in Urban Areas," Energies, MDPI, vol. 13(13), pages 1-22, June.
    12. Jian Liang & Kang Mo Koo & Chyi Lin Lee, 2021. "Transportation infrastructure improvement and real estate value: impact of level crossing removal project on housing prices," Transportation, Springer, vol. 48(6), pages 2969-3011, December.
    13. Wenhao Xue & Xinyao Li & Zhe Yang & Jing Wei, 2022. "Are House Prices Affected by PM 2.5 Pollution? Evidence from Beijing, China," IJERPH, MDPI, vol. 19(14), pages 1-17, July.
    14. Radoslaw Trojanek & Justyna Tanas & Saulius Raslanas & Audrius Banaitis, 2017. "The Impact of Aircraft Noise on Housing Prices in Poznan," Sustainability, MDPI, vol. 9(11), pages 1-16, November.
    15. Sharma, Bijay P. & Cho, Seong-Hoon, 2021. "Analyzing how forest-based amenity values and carbon storage benefits affect spatial targeting for conservation investment," Forest Policy and Economics, Elsevier, vol. 131(C).

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    More about this item

    Keywords

    Air pollution; Noise pollution; Housing location; Housing price;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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