Air quality affects house prices — Analysis based on RD of the Huai River policy. (October 2022)

• Record Type: Journal Article
• Authors: Zhang, Siyang; Zhou, Yuding; Xu, Pengpeng
• Is Part Of: Sustainable cities and society. Volume 85(2022)
• Publication Date: 2022-10
• Subjects: Housing price -- Air quality -- Huai River policy -- Regression discontinuing design; RD Regression Discontinuing Design -- GWR Geographically Weighted Regression Model -- GIS Geographic Information System -- WTP Willingness to Pay -- MWTP Marginal Willingness to Pay -- OLS Ordinary Least Squares -- 2SLS 2 Stage Least Squares -- QH line Qinling-Huaihe line -- FDI Foreign Direct Investment -- SO2 Sulfur dioxide -- SPD soot and dust; Sustainable urban development -- Periodicals; Sustainable buildings -- Periodicals; Urban ecology (Sociology) -- Periodicals; 307.76
• DOI: 10.1016/j.scs.2022.104017
• Languages: English
• ISSNs: 2210-6707

Abstract

Highlights: Huai River policy leads to higher concentrations of air pollutants and lower house prices in cities north of the Huai River than in the south. Air quality significantly affects house prices, such as, for every 1 unit increase in PM10 concentration, house prices will decrease by 0.24%; for every 1 unit increase in PM2.5 concentration, house prices will decrease by 0.37%; and for every 1 unit increase in concentration, house prices will decrease by 0.24%. Huai River policy reduces the air quality in the northern region, and then has a restraining effect on the northern house prices level, and there is no alternative path for the Huai River policy to have an effect on house prices. Abstract: Based on the quasi-natural experiment of the Huai River policy in China, this research attempts to demonstrate the causal relationship between the Huai River policy, air quality and house prices, as well as the underlying logical mechanism. This paper's findings suggest that the Huai River policy leads to higher concentrations of air pollutants such as PM10, S O 2 and PM2.5 in cities north of the Huai River than in the south, and lower real estate prices in cities north of the Huai River than in the south. Secondly, air quality significantly affects house prices.For every 1 unit increase in PM10 concentration, house prices will decrease by 0.24%; for every 1 unit increase in PM2.5 concentration, house prices will decrease by 0.37%; and for every 1 unit increase in S O 2 concentration, house prices will decrease by 0.24%. Finally, by tracing the potential mechanisms, the results SO2 show that the Huai River policy reduces the air quality in the northern region, and then has a restraining effect on the northern housing price level, and there is no alternative path for the Huai River policy to affect house prices.