Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument
Abstract We estimate the degree and scope of PM2.5-induced negative price shock in Korea’s local housing markets, taking a two-stage hedonic approach. For the analysis, Korea’s local PM2.5 levels are treated as endogenous and are instrumented with regional air pollutants from China. W...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
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Springer Netherlands
2022
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| Online Access: | https://hdl.handle.net/1721.1/142563 |
| _version_ | 1826208088374378496 |
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| author | Nam, Kyung-Min Ou, Yifu Kim, Euijune Zheng, Siqi |
| author2 | Massachusetts Institute of Technology. Department of Urban Studies and Planning |
| author_facet | Massachusetts Institute of Technology. Department of Urban Studies and Planning Nam, Kyung-Min Ou, Yifu Kim, Euijune Zheng, Siqi |
| author_sort | Nam, Kyung-Min |
| collection | MIT |
| description | Abstract
We estimate the degree and scope of PM2.5-induced negative price shock in Korea’s local housing markets, taking a two-stage hedonic approach. For the analysis, Korea’s local PM2.5 levels are treated as endogenous and are instrumented with regional air pollutants from China. We find that a unit µg/m3 PM2.5 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 PM2.5 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. |
| first_indexed | 2024-09-23T14:00:20Z |
| format | Article |
| id | mit-1721.1/142563 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T14:00:20Z |
| publishDate | 2022 |
| publisher | Springer Netherlands |
| record_format | dspace |
| spelling | mit-1721.1/1425632023-05-03T05:02:14Z Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument Nam, Kyung-Min Ou, Yifu Kim, Euijune Zheng, Siqi Massachusetts Institute of Technology. Department of Urban Studies and Planning Abstract We estimate the degree and scope of PM2.5-induced negative price shock in Korea’s local housing markets, taking a two-stage hedonic approach. For the analysis, Korea’s local PM2.5 levels are treated as endogenous and are instrumented with regional air pollutants from China. We find that a unit µg/m3 PM2.5 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 PM2.5 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. 2022-05-17T12:03:38Z 2022-05-17T12:03:38Z 2022-04-26 2022-05-17T03:36:37Z Article http://purl.org/eprint/type/JournalArticle https://hdl.handle.net/1721.1/142563 Nam, Kyung-Min, Ou, Yifu, Kim, Euijune and Zheng, Siqi. 2022. "Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument." en https://doi.org/10.1007/s10640-022-00682-1 Attribution-NonCommercial-ShareAlike 4.0 International https://creativecommons.org/licenses/by-nc-sa/4.0/ The Author(s), under exclusive licence to Springer Nature B.V. application/pdf Springer Netherlands Springer Netherlands |
| spellingShingle | Nam, Kyung-Min Ou, Yifu Kim, Euijune Zheng, Siqi Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument |
| title | Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument |
| title_full | Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument |
| title_fullStr | Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument |
| title_full_unstemmed | Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument |
| title_short | Air Pollution and Housing Values in Korea: A Hedonic Analysis with Long-range Transboundary Pollution as an Instrument |
| title_sort | air pollution and housing values in korea a hedonic analysis with long range transboundary pollution as an instrument |
| url | https://hdl.handle.net/1721.1/142563 |
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