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The Coal-to-Gas Fuel Switching and its Effects on Housing Prices

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Listed:
  • Nathaly Rivera

    (University of Alaska Anchorage)

  • Scott Loveridge

    (Michigan State University)

Abstract

We derive causal property value impacts of the coal-to-gas fuel switching conversion implemented by several power plants in the United States. We use an extensive dataset of property transactions around the country and adopt several spatial difference-in-difference approaches that use records of residential property transactions of homes with wind exposure and proximity to the switching plants before and after the switch. A triple-differences control function estimator using coal-fired plants that did not innovate strengthens these estimations. Our results indicate that the shutdown of coal-fired generators increases property values of downwind homes by 15% in the immediate vicinity of fuel-switching plants (

Suggested Citation

  • Nathaly Rivera & Scott Loveridge, 2020. "The Coal-to-Gas Fuel Switching and its Effects on Housing Prices," Working Papers 2020-01, University of Alaska Anchorage, Department of Economics.
    • Handle: RePEc:ala:wpaper:2020-01
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    File URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA202001.pdf
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    Cited by:

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    2. Song, Jinbo & Nie, Rong & Yuan, Hehui & Gao, Jingxin, 2023. "Does the renovation of waste-to-energy incineration plants attenuate the housing price gradient? Evidence from a quasi-natural experiment in Shenzhen, China," Energy Economics, Elsevier, vol. 120(C).
    3. Jiaojiao Sun & Feng Dong, 2023. "Optimal reduction and equilibrium carbon allowance price for the thermal power industry under China’s peak carbon emissions target," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-27, December.

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    More about this item

    Keywords

    Fossil Fuels; Fuel Switching; Environmental Quality; Housing Market; Environmental Valuation; Hedonic Models;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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