The impact of hazardous industrial facilities on housing prices: A comparison of parametric and semiparametric hedonic price models

Céline Grislain-Letrémy, Arthur Katossky

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.
Original languageEnglish
JournalRegional Science and Urban Economics
Volume49
Pages (from-to)93-107
ISSN0166-0462
DOIs
Publication statusPublished - 2014

Keywords

  • Hedonic analysis
  • Conditionally parametric regression
  • Urban housing markets
  • Industrial risk

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