The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France

LE BOENNEC, Rémy and SALLADARRE, Frédéric (2017): The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France. Published in: Ecologicial Economics No. 138 (August 2017): pp. 82-89.

Abstract

In this paper, we aim to demonstrate the way air pollution and noise may affect the well-being of the inhabitants of Nantes, France, designated the European Green Capital in 2013. We use a database compiling certain attributes of the houses that exchanged hands and their price. In order to understand the complex relationships that can exist between explanatory variables and housing price, we consider not only the direct effects of air pollution and noise on the price of around 3,000 houses sold in Nantes and its metropolitan area from 2002 to 2008, but also the way some location attributes of the dwellings may affect air pollution and noise. We demonstrate that even if air pollution may be affected by some location characteristics of the house, this variable has no significant impact on the price, in the end. Noise is affected by the location of the house and exerts some significant effect on housing price. However, whilst air pollution does not impact at a global level, people who have lived in an air polluted county before coming to Nantes are sensitive to air quality, whereas those who come from a low air polluted county tend to choose low noise exposure dwellings.

• Item Type: MPRA Paper
• Language: English
• Keywords: air pollution, noise pollution, housing location, housing price
• Subjects: D - Microeconomics > D6 - Welfare Economics > D62 - Externalities; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

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