Do Housing Prices Reflect Environmental Health Risks? Evidence From More Than 1600 Toxic Plant Openings And Closings
AbstractA ubiquitous and largely unquestioned assumption in studies of housing markets is that there is perfect information about local amenities. This paper measures the housing market and health impacts of 1,600 openings and closings of industrial plants that emit toxic pollutants. We find that housing values within one mile decrease by 1.5 percent when plants open, and increase by 1.5 percent when plants close. This implies an aggregate loss in housing values per plant of about $1.5 million. While the housing value impacts are concentrated within ½ mile, we find statistically significant infant health impacts up to one mile away.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 13-14.
Length: 45 pages
Date of creation: Apr 2013
Date of revision:
Other versions of this item:
- Janet Currie & Lucas Davis & Michael Greenstone & Reed Walker, 2013. "Do Housing Prices Reflect Environmental Health Risks? Evidence from More than 1600 Toxic Plant Openings and Closings," NBER Working Papers 18700, National Bureau of Economic Research, Inc.
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-13 (All new papers)
- NEP-ENV-2013-04-13 (Environmental Economics)
- NEP-HEA-2013-04-13 (Health Economics)
- NEP-URE-2013-04-13 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Linda T. M. Bui & Christopher J. Mayer, 2003.
"Regulation and Capitalization of Environmental Amenities: Evidence from the Toxic Release Inventory in Massachusetts,"
The Review of Economics and Statistics,
MIT Press, vol. 85(3), pages 693-708, August.
- Linda T.M. Bui & Christopher J. Mayer, . "Regulation and Capitalization of Environmental Amenities: Evidence from the Toxic Release Inventory in Massachusetts," Zell/Lurie Center Working Papers 348, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
- Deschenes, Olivier & Greenstone, Michael & Shapiro, Joseph S., 2013.
"Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program and Ozone Reductions,"
IZA Discussion Papers
7557, Institute for the Study of Labor (IZA).
- Olivier Deschenes & Michael Greenstone & Joseph S. Shapiro, 2012. "Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program and Ozone Reductions," NBER Working Papers 18267, National Bureau of Economic Research, Inc.
- Nikhil Agarwal & Chanont Banternghansa & Linda T.M. Bui, 2009.
"Toxic exposure in America: estimating fetal and infant health outcomes,"
2009-016, Federal Reserve Bank of St. Louis.
- Nikhil Agarwal & Chanont Banternghansa & Linda Bui, 2009. "Toxic Exposure in America: Estimating Fetal and Infant Health Outcomes," NBER Working Papers 14977, National Bureau of Economic Research, Inc.
- John Y. Campbell & Stefano Giglio & Parag Pathak, 2009.
"Forced Sales and House Prices,"
NBER Working Papers
14866, National Bureau of Economic Research, Inc.
- Leigh Linden & Jonah E. Rockoff, 2008. "Estimates of the Impact of Crime Risk on Property Values from Megan's Laws," American Economic Review, American Economic Association, vol. 98(3), pages 1103-27, June.
- William Walker, 2012. "The Transitional Costs of Sectoral Reallocation: Evidence from the Clean Air Act and the Workforce," Working Papers 12-02, Center for Economic Studies, U.S. Census Bureau.
- Joshua Graff Zivin & Matthew Neidell, 2013.
"Environment, Health, and Human Capital,"
NBER Working Papers
18935, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fariha Kamal).
If references are entirely missing, you can add them using this form.