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Do Housing Prices Reflect Environmental Health Risks? Evidence From More Than 1600 Toxic Plant Openings And Closings

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

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 ½ mile, we find statistically significant infant health impacts up to one mile away.

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File URL: ftp://ftp2.census.gov/ces/wp/2013/CES-WP-13-14.pdf
File Function: First version, 2013
Download Restriction: no

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 13-14.

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Length: 45 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:cen:wpaper:13-14
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