Real-time emissions data disclosure of Waste-to-Energy incineration plants and public risk perceptions: Evidence from the housing market

This paper examines the effect of real-time corporate emissions data disclosure on housing markets, leveraging China’s 2017 “Installing, Erecting, and Networking” (IEN) policy as a quasi-natural experiment. Using a difference-in-difference-in-differences (DDD) analysis on over 35,000 housing transactions near 13 Waste-to-Energy (WtE) incineration plants, we find that the real-time emissions data disclosure significantly attenuates the housing price gradient by approximately 34.7%. This attenuation corresponds to an economic gain equivalent to around 39% of an urban resident’s annual disposable income, reflecting a substantial reduction in residents’ perceived environmental risks. Event study analysis demonstrates that the housing market response emerges rapidly after the introduction of real-time disclosure and remains persistent thereafter. Further heterogeneity analyses indicate that the positive effects of the disclosure are more pronounced in urban areas and are stronger near plants that operate in compliance with emission standards, employ advanced flue gas abatement technologies, and have smaller treatment capacities. Our findings underscore the novel role of real-time emissions data disclosure in mitigating environmental risk perceptions, offering key policy implications for enhancing public acceptance of potentially controversial environmental infrastructure.