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

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  • Gema Fernandez-Aviles

    (University of Castilla-La Mancha)

  • Roman Minguez

    (University of Castilla-La Mancha)

  • Jose-Maria Montero

    (University of Castilla-La Mancha)

Abstract

Recent work has shown how spatial econometrics can be applied to a housingvalue hedonic equation that includes air pollution variables. In this paper we propose 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. We do, however, assume both possibilities for the index: exogenous and endogenous. Unlike most empirical studies in the literature, we have focused our empirical analysis on a European city, Madrid. In order to do so, we constructed a massive data base in 2009 that includes almost 12,000 dwellings.

Suggested Citation

  • Gema Fernandez-Aviles & Roman Minguez & Jose-Maria Montero, 2012. "Geostatistical Air Pollution Indexes in Spatial Hedonic Models: The case of Madrid, Spain," Journal of Real Estate Research, American Real Estate Society, vol. 34(2), pages 243-274.
    • Handle: RePEc:jre:issued:v:34:n:2:2012:p:243-274
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    References listed on IDEAS

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    1. Jose M. Montero & Beatriz Larraz, 2011. "Interpolation methods for geographical data: Housing and commercial establishment markets," Journal of Real Estate Research, American Real Estate Society, vol. 33(2), pages 233-244.
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    6. Liv Osland, 2010. "An Application of Spatial Econometrics in Relation to Hedonic House Price Modelling," Journal of Real Estate Research, American Real Estate Society, vol. 32(3), pages 289-320.
    7. Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
    8. Robert A. Simons & Jesse D. Saginor, 2006. "A Meta-Analysis of the Effect of Environmental Contamination and Positive Amenities on Residential Real Estate Values," Journal of Real Estate Research, American Real Estate Society, vol. 28(1), pages 71-104.
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    Cited by:

    1. Osseni, Abdel & Bareille, Francois & DUPRAZ, Pierre, 2018. "Decoupling Values Of Agricultural Externalities According To Scale: A Spatial Hedonic Approach In Brittany," 2018 Annual Meeting, August 5-7, Washington, D.C. 273998, Agricultural and Applied Economics Association.
    2. Na Zhang & Haiyan Wang & Baohua Yang & Muyuan Wu, 2023. "Evolutionary Game Mechanism of Governmental Cross-Regional Cooperation in AirPollution Management," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    3. Mussa, Abeba & Nwaogu, Uwaoma G. & Pozo, Susan, 2017. "Immigration and housing: A spatial econometric analysis," Journal of Housing Economics, Elsevier, vol. 35(C), pages 13-25.
    4. Liv Osland & Inge Thorsen, 2013. "Spatial Impacts, Local Labour Market Characteristics and Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 2063-2083, August.
    5. Masha Maslianskaia-Pautrel & Catherine Baumont pba148, 2016. "The nature and impacts of environmental spillovers on housing prices: A spatial hedonic analysis," Working Papers 2016.04, FAERE - French Association of Environmental and Resource Economists.
    6. Dupraz, P. & Osseni, A. & Bareille, F., 2018. "Assessing the direct and indirect impacts of breeding activities on residential values: a spatial hedonic approach in Brittany," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276994, International Association of Agricultural Economists.
    7. Laureti, Tiziana & Montero, José-María & Fernández-Avilés, Gema, 2014. "A local scale analysis on influencing factors of NOx emissions: Evidence from the Community of Madrid, Spain," Energy Policy, Elsevier, vol. 74(C), pages 557-568.
    8. Myung-Jin Jun, 2018. "Quantifying Welfare Impacts of Air Pollution in Seoul: A Two-Stage Hedonic Price Approach," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-25, June.
    9. Zhonghua Cheng & Qingfei Xu & Ian Fraser Sanderson, 2021. "China's economic growth and haze pollution control," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2653-2669, July.
    10. José-María Montero & Román Mínguez & Gema Fernández-Avilés, 2018. "Housing price prediction: parametric versus semi-parametric spatial hedonic models," Journal of Geographical Systems, Springer, vol. 20(1), pages 27-55, January.
    11. Beatrice D. Simo-Kengne & Lumengo Bonga-Bonga, 2020. "House prices and fertility in South Africa: A spatial econometric analysis," Economics Bulletin, AccessEcon, vol. 40(4), pages 3193-3210.
    12. Li, Xiaoshu & Boyle, Kevin J. & Preisser, Evan L. & Holmes, Thomas P. & Orwig, David, 2022. "Property value effects of the Hemlock wooly adelgid infestation in New England, U.S.A," Ecological Economics, Elsevier, vol. 194(C).
    13. Jie Chen & Haiyong Zhang & Qian Zhou, 2021. "Rule by Law, Law-Based Governance, and Housing Prices: The Case of China," Land, MDPI, vol. 10(6), pages 1-22, June.
    14. José-María Montero & Gema Fernández-Avilés & Tiziana Laureti, 2021. "A Local Spatial STIRPAT Model for Outdoor NO x Concentrations in the Community of Madrid, Spain," Mathematics, MDPI, vol. 9(6), pages 1-33, March.

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    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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