Spatial Effects of Air Pollution on the Housing Market: Evidence from South Korea

Lee, Young-Ju

doi:10.1080/08965803.2021.2008109

Cited by 3 publications

(8 citation statements)

References 32 publications

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“…Anselin and Lozano-Gracia ( 2008 ) and Lu and Lee ( 2022 ) have indicated the statistically significant and negative impact of air pollution on housing prices, while other discussed studies do not confirm these conclusions. One of the possible explanations for this discrepancy is that the two former papers referred to comparatively large areas (respectively, a surface area of around 230,000 km 2 and a country).…”

Section: Introductionmentioning

confidence: 89%

“…However, with a paradigm shift towards spatial econometrics modelling, the practice has changed (e.g. Anselin and Lozano-Gracia 2008 ; Fernández-Avilés et al 2012 ; Lu and Lee 2022 ). Another one is the choice of pollutants included in the research.…”

Section: Introductionmentioning

confidence: 99%

“…There are two common streams: to examine the influence of the most perceptible air contaminants, such as PM 10 or ozone (Chay and Greenstone 2005 ; Anselin and Le Gallo 2006 ; Kim and Yoon 2019 ), or to use a synthetic measure (often the weighted average of different pollutants), such as the air pollution index (e.g. Anselin and Lozano-Gracia 2008 ; Fernández-Avilés et al 2012 ; Lu and Lee 2022 ). We show there are advantages and disadvantages of both.…”

Section: Introductionmentioning

confidence: 99%

“…One is to use an endogeneity toolbox, e.g. instrumental variables and the two-stage least squares (2SLS) method when estimating the model (Anselin and Lozano-Gracia 2008 ; Lu and Lee 2022 ). However, the results are ambiguous.…”

Section: Introductionmentioning

confidence: 99%

“…As a result, the coefficient of PM 10 turned out to be statistically insignificant; however, the change between 2015 and 2016 in air quality was significantly and negatively associated with property value. Another example of an Asian case study is the research conducted by Lu and Lee ( 2022 ) in South Korea. They propose an air pollution index (API) to assess the influence of air quality on the real estate market, following Anselin and Lozano-Gracia ( 2008 ) and Fernández-Avilés et al 2012 .…”

Section: Introductionmentioning

confidence: 99%

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Fresh air in the city: the impact of air pollution on the pricing of real estate

Miłuch,

Kopczewska

2024

Environ Sci Pollut Res

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This study investigates the impact of ambient air pollution on housing prices in Warsaw, Poland, by examining spatial dependencies. The high concentration of particulate matter (PM10, PM2.5 and PM1) is expected to reduce real estate values. Using a hedonic model with approximately 15,000 observations and a spatial error model, we did not find evidence of this impact. Standard and premium housing submarkets differ in price determinants, but both are insensitive to environmental issues. This could be explained by the lack of comprehensive intra-urban historical information on air pollution, which limits investors’ rationality and their ability to properly value real estate based on environmental issues. Additionally, measurement and aggregation issues, along with low pollution variability within the city, may contribute to the insignificance of this information in real estate sales prices. Our empirical research confirms a strong link between air pollution and weather conditions within the city, where low temperatures and low-speed southern winds worsen contamination levels, while high temperatures and westerly winds improve air quality. Furthermore, we find that incorporating pollution data using PM yearly mean concentration works better in modelling than the PCA-reduced air pollution index.

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Section: Introductionmentioning

confidence: 89%