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How does a change in risk perception affect the housing market ? Evidence from an industrial accident in France

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  • Marianne Bléhaut

Abstract

In 2001, the AZF plant exploded in Toulouse (France). The accident was unexpected, it strongly damaged local housing and benefited from a wide media coverage. It provides a rare opportunity to analyze the consequences of a shift in risk perception on housing markets and neighborhoods subject to industrial risk. Using a difference-in-difference matching strategy, this paper shows that although transaction prices do not change as a result of this shift, local housing markets are indeed affected. In particular, the vacancy rate increases, and the standard of living in the at-risk areas tends to deteriorate.

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  • Marianne Bléhaut, 2014. "How does a change in risk perception affect the housing market ? Evidence from an industrial accident in France," ERSA conference papers ersa14p1410, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa14p1410
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa14/e140826aFinal01410.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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