Back to Search
Start Over
Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument.
- Source :
- Environmental & Resource Economics; Jun2022, Vol. 82 Issue 2, p383-407, 25p
- Publication Year :
- 2022
-
Abstract
- We estimate the degree and scope of PM<subscript>2.5</subscript>-induced negative price shock in Korea's local housing markets, taking a two-stage hedonic approach. For the analysis, Korea's local PM<subscript>2.5</subscript> levels are treated as endogenous and are instrumented with regional air pollutants from China. We find that a unit µg/m<superscript>3</superscript> PM<subscript>2.5</subscript> level increase in a Korean city is associated with a 3.7% decline in local residential property value. Long-range transboundary pollution has significant effects on Korea's local PM<subscript>2.5</subscript> levels with an elasticity of 0.05. These results enrich the sparse hedonic literature on local air-quality valuation in connection to long-range transboundary pollution in East Asia. The advanced methodological features presented in our two-staged identification strategy with a novel instrument is another contribution of this paper. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 09246460
- Volume :
- 82
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Environmental & Resource Economics
- Publication Type :
- Academic Journal
- Accession number :
- 156889445
- Full Text :
- https://doi.org/10.1007/s10640-022-00682-1