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Do Housing Prices Reflect Environmental Health Risks? Evidence from More than 1600 Toxic Plant Openings and Closings

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  • Janet Currie
  • Lucas Davis
  • Michael Greenstone
  • Reed Walker

Abstract

A 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 1/2 mile, we find statistically significant infant health impacts up to one mile away.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18700.

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Date of creation: Jan 2013
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Handle: RePEc:nbr:nberwo:18700

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Cited by:
  1. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2014. "Every Breath You Take – Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," NBER Working Papers 19858, National Bureau of Economic Research, Inc.
  2. Ziebarth, N. R.; & Schmitt, M.; & Karlsson, M.;, 2013. "The short-term population health effects of weather and pollution: implications of climate change," Health, Econometrics and Data Group (HEDG) Working Papers 13/34, HEDG, c/o Department of Economics, University of York.
  3. Emmanuelle Lavaine & Matthew J. Neidell, 2013. "Energy Production and Health Externalities: Evidence from Oil Refinery Strikes in France," NBER Working Papers 18974, National Bureau of Economic Research, Inc.
  4. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 689-730, September.
  5. Tom Chang & Joshua S. Graff Zivin & Tal Gross & Matthew J. Neidell, 2014. "Particulate Pollution and the Productivity of Pear Packers," NBER Working Papers 19944, National Bureau of Economic Research, Inc.
  6. Rohlf, Alexander & Römer, Daniel & von Graevenitz, Kathrine, 2014. "The Effect of Emission Information on Housing Prices in Germany," Working Papers 0554, University of Heidelberg, Department of Economics.

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