DO HOUSING PRICES REFLECT ENVIRONMENTAL HEALTH RISKS? EVIDENCE FROM MORE THAN 1600 TOXIC PLANT OPENINGS AND CLOSINGS
April 2013
Working Paper Number:
CES-13-14
Abstract
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 ' mile, we find statistically significant infant health impacts up to one mile away.
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:
econometric,
impact,
spillover,
pollution,
epa,
environmental,
pollutant,
chemical,
population,
concentration,
housing,
residential,
neighborhood,
health,
resident,
home,
amenity,
residence,
house,
homeowner
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:
Annual Survey of Manufactures,
Standard Statistical Establishment List,
Energy Information Administration,
Census Bureau Longitudinal Business Database,
Toxics Release Inventory,
Longitudinal Business Database,
Department of Economics,
Department of Energy,
Environmental Protection Agency,
Michigan Institute for Teaching and Research in Economics,
Princeton University,
General Accounting Office,
National Ambient Air Quality Standards,
Department of Health and Human Services,
Special Sworn Status,
National Institutes of Health,
Probability Density Function,
Centers for Disease Control and Prevention
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