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Homeownership and Aerosol Air Pollution

Author

Listed:
  • Frank Simmen
  • Bernd Süssmuth

Abstract

We show that particulate matter pollution is lower in advanced economies where political parties favor homeownership. We rationalize this with a simple model featuring a polluting industry and owner-occupiers who push to restrict undesirable land uses. Pollution declines when homeowners have enough political power to enforce their preferences. We test this using data from German planning regions (2002–2014). Exploiting World War II area bombing as an instrument for homeownership - via its long-run effects on tenure patterns - we provide evidence suggesting a causal link between higher homeownership rates and lower air pollution.

Suggested Citation

  • Frank Simmen & Bernd Süssmuth, 2026. "Homeownership and Aerosol Air Pollution," CESifo Working Paper Series 12581, CESifo.
    • Handle: RePEc:ces:ceswps:_12581
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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