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Nitrates and property values: evidence from a french market intervention

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  • Henrik Andersson

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Emmanuelle Lavaine

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

This paper examines the effect of properties being located in vulnerable zones in term of nitrates on the property prices using a change in the classification of vulnerable zones in France in 2012. Using an identification strategy based on a spatial difference- in-dfferences specification, we show that the revision of the classification significantly decreased not only property prices in zones that became classified as vulnerable after the revision, but also those of properties already classified as vulnerable. However, the effect was stronger for the former, 10% vs. 5%, and this differences may reect a difference in how zones are classified. The risks covered in the 2012 classification cover a broader range of risks, and hence the larger price effect may reflect this additional perceived risk exposure.

Suggested Citation

  • Henrik Andersson & Emmanuelle Lavaine, 2018. "Nitrates and property values: evidence from a french market intervention," CEE-M Working Papers hal-01947415, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    • Handle: RePEc:hal:wpceem:hal-01947415
    Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-01947415
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    References listed on IDEAS

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    Keywords

    water pollution; difference in difference; Hedonic Price Analysis;
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