TY - JOUR
T1 - The Impact of Hazardous Industrial Facilities on Housing Prices
T2 - A Comparison of Parametric and Semiparametric Hedonic Price Models
AU - Grislain-Letrémy, Céline
AU - Katossky, Arthur
PY - 2014/11
Y1 - 2014/11
N2 - The willingness of households to pay for prevention against industrial risks can be revealed by real estate markets. By using very rich microdata, we study housing prices in the vicinity of hazardous industries near three important French cities. We show that the impact of hazardous plants on the housing values strongly differs among these three areas, even if the areas all surround chemical and petrochemical industries. We compare the results from both standard parametric and more flexible, semiparametric models of hedonic property. We show that the parametric model might structurally lead to important biases in the estimated value of the impact of hazardous plants on housing values.
AB - The willingness of households to pay for prevention against industrial risks can be revealed by real estate markets. By using very rich microdata, we study housing prices in the vicinity of hazardous industries near three important French cities. We show that the impact of hazardous plants on the housing values strongly differs among these three areas, even if the areas all surround chemical and petrochemical industries. We compare the results from both standard parametric and more flexible, semiparametric models of hedonic property. We show that the parametric model might structurally lead to important biases in the estimated value of the impact of hazardous plants on housing values.
KW - Hedonic analysis
KW - Conditionally parametric regression
KW - Urban housing markets
KW - Industrial risk
U2 - 10.1016/j.regsciurbeco.2014.09.002
DO - 10.1016/j.regsciurbeco.2014.09.002
M3 - Journal article
VL - 49
SP - 93
EP - 107
JO - Regional Science and Urban Economics
JF - Regional Science and Urban Economics
SN - 0166-0462
ER -