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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 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
Note: CH EEE HC HE LS PE
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  1. 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).
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  4. Janet Currie & Matthew J. Neidell & Johannes Schmieder, 2008. "Air Pollution and Infant Health: Lessons from New Jersey," NBER Working Papers 14196, National Bureau of Economic Research, Inc.
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  8. Scott Marchi & James Hamilton, 2006. "Assessing the Accuracy of Self-Reported Data: an Evaluation of the Toxics Release Inventory," Journal of Risk and Uncertainty, Springer, vol. 32(1), pages 57-76, January.
  9. Janet Currie & W. Reed Walker, 2009. "Traffic Congestion and Infant Health: Evidence from E-ZPass," NBER Working Papers 15413, National Bureau of Economic Research, Inc.
  10. 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.
  11. Steven J. Davis & R. Jason Faberman & John Haltiwanger & Ron Jarmin & Javier Miranda, 2008. "Business Volatility, Job Destruction, and Unemployment," NBER Working Papers 14300, National Bureau of Economic Research, Inc.
  12. Agarwal, Nikhil & Banternghansa, Chanont & Bui, Linda T.M., 2010. "Toxic exposure in America: Estimating fetal and infant health outcomes from 14 years of TRI reporting," Journal of Health Economics, Elsevier, vol. 29(4), pages 557-574, July.
  13. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2010. "The New Economics of Equilibrium Sorting and its Transformational Role for Policy Evaluation," NBER Working Papers 16349, National Bureau of Economic Research, Inc.
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  17. Portney, Paul R., 1981. "Housing prices, health effects, and valuing reductions in risk of death," Journal of Environmental Economics and Management, Elsevier, vol. 8(1), pages 72-78, March.
  18. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
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  25. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  26. 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.
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