How does environmental pollution affect housing price

Abstract

Environmental quality and housing prices have become two hot topics closely related to people's lives. When choosing housing, residents pay more and more attention to the quality of the surrounding environment. However, in view of the differences in living standards, there are huge regional differences in economic conditions and air pollution in different regions, resulting in different distributions of immigration rates, and immigration rates have a significant impact on housing prices. This article discusses the difference in immigration rate caused by environmental pollution and its impact on housing prices from a spatial perspective. In this article, we use the GIS system to analyze the impact of environmental pollution on an immigration rate. We use Chicago's immigration rate, economic conditions, pollution and other GIS data to show that environmental pollution is relevant to the immigration rate. People are willing to relocate to areas with low levels of environmental pollution. Then we use the spatial Dubin model to study the impact of environmental pollution on housing prices. We used housing price data, environmental data and other economic data from 258 cities in China from 2008 to 2019. The city data mainly comes from the city statistical yearbook. Environmental data mainly comes from environmental monitoring websites. This paper found that the increase in sulfur dioxide and nitrogen dioxide emissions will significantly reduce prices, while the increase in industrial wastewater emissions has no significant impact on housing prices. In addition, we also investigated the impact of surrounding cities on local prices. The increase in industrial wastewater discharge in surrounding cities has no significant impact on local housing prices, while the increase in environmental gas emissions has no significant impact on local housing prices. Finally, if the residents are assumed to be healthy producers, and the residents' demand-supply curve for health is transformed, it indicates that a place with a good economy in this area is often willing to pay more to maintain their health, or enjoy better medical care, or move to an area with lower air pollution levels. The conclusion of this article is that reducing the level of air pollution plays an important role in increasing the attractiveness of the city and thereby increasing housing prices. Therefore, if government policymakers want to increase the attractiveness of the city and promote economic development, they can start with improving the air quality in the city.