How Does Air Pollution Influence Housing Prices in the Bay Area?

In this paper we examine the effects of localized air pollution measurements on the housing prices in Oakland, CA. With high-resolution air pollution measurements for NO, NO<sub>2</sub>, and BC, we can assess the ambient air quality on a parcel-by-parcel basis within the study domain. We...

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Autores principales:	Minmeng Tang, Deb Niemeier
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	air pollution housing price instrumental variable spatial autocorrelation spatial lag model Medicine R
Acceso en línea:	https://doaj.org/article/a7649983a09d4133a6d96e70f5ff9240
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spelling	oai:doaj.org-article:a7649983a09d4133a6d96e70f5ff92402021-11-25T17:51:53ZHow Does Air Pollution Influence Housing Prices in the Bay Area?10.3390/ijerph1822121951660-46011661-7827https://doaj.org/article/a7649983a09d4133a6d96e70f5ff92402021-11-01T00:00:00Zhttps://www.mdpi.com/1660-4601/18/22/12195https://doaj.org/toc/1661-7827https://doaj.org/toc/1660-4601In this paper we examine the effects of localized air pollution measurements on the housing prices in Oakland, CA. With high-resolution air pollution measurements for NO, NO<sub>2</sub>, and BC, we can assess the ambient air quality on a parcel-by-parcel basis within the study domain. We combine a spatial lag model with an instrumental variable method to consider both the spatial autocorrelation and endogeneity effects between housing prices and air pollution concentrations. To the best of our knowledge, this is the first work in this field that combines both spatial autocorrelation and endogeneity effects in one model with accurate air pollution concentration measurements for each individual parcel. We found a positive spatial autocorrelation with housing prices using Moral’s I (value of 0.276) with the total sample number of 26,386. Somewhat surprisingly, we found a positive relationship between air pollution and housing prices. There are several possible explanations for this finding. Homeowners in high demand, low-stock housing areas, such as our study, may be insensitive to air pollution when the overall ambient air quality is relatively good. It is also possible that under clean air conditions, low variability in pollutant concentrations has little effect on property values. These hypotheses could be verified with more high-resolution air pollution measurements with a diversity of regions.Minmeng TangDeb NiemeierMDPI AGarticleair pollutionhousing priceinstrumental variablespatial autocorrelationspatial lag modelMedicineRENInternational Journal of Environmental Research and Public Health, Vol 18, Iss 12195, p 12195 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	air pollution housing price instrumental variable spatial autocorrelation spatial lag model Medicine R
spellingShingle	air pollution housing price instrumental variable spatial autocorrelation spatial lag model Medicine R Minmeng Tang Deb Niemeier How Does Air Pollution Influence Housing Prices in the Bay Area?
description	In this paper we examine the effects of localized air pollution measurements on the housing prices in Oakland, CA. With high-resolution air pollution measurements for NO, NO<sub>2</sub>, and BC, we can assess the ambient air quality on a parcel-by-parcel basis within the study domain. We combine a spatial lag model with an instrumental variable method to consider both the spatial autocorrelation and endogeneity effects between housing prices and air pollution concentrations. To the best of our knowledge, this is the first work in this field that combines both spatial autocorrelation and endogeneity effects in one model with accurate air pollution concentration measurements for each individual parcel. We found a positive spatial autocorrelation with housing prices using Moral’s I (value of 0.276) with the total sample number of 26,386. Somewhat surprisingly, we found a positive relationship between air pollution and housing prices. There are several possible explanations for this finding. Homeowners in high demand, low-stock housing areas, such as our study, may be insensitive to air pollution when the overall ambient air quality is relatively good. It is also possible that under clean air conditions, low variability in pollutant concentrations has little effect on property values. These hypotheses could be verified with more high-resolution air pollution measurements with a diversity of regions.
format	article
author	Minmeng Tang Deb Niemeier
author_facet	Minmeng Tang Deb Niemeier
author_sort	Minmeng Tang
title	How Does Air Pollution Influence Housing Prices in the Bay Area?
title_short	How Does Air Pollution Influence Housing Prices in the Bay Area?
title_full	How Does Air Pollution Influence Housing Prices in the Bay Area?
title_fullStr	How Does Air Pollution Influence Housing Prices in the Bay Area?
title_full_unstemmed	How Does Air Pollution Influence Housing Prices in the Bay Area?
title_sort	how does air pollution influence housing prices in the bay area?
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/a7649983a09d4133a6d96e70f5ff9240
work_keys_str_mv	AT minmengtang howdoesairpollutioninfluencehousingpricesinthebayarea AT debniemeier howdoesairpollutioninfluencehousingpricesinthebayarea
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How Does Air Pollution Influence Housing Prices in the Bay Area?

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