The Value of Environmental Monitoring: Evidence from the Housing Market

67 Pages Posted: 9 Oct 2024

See all articles by Brent W. Ambrose

Brent W. Ambrose

Pennsylvania State University - Department of Insurance & Real Estate

Liu Ee Chia

Pennsylvania State University - Smeal College of Business

Date Written: April 01, 2024

Abstract

Governments allocate substantial resources to regulate the environmental consequences of industrial activity, while little is known about the economic value associated with such oversight. We fill this gap by documenting a 1.1% increase in US housing values following the establishment of a nearby monitoring station. This positive price effect is attributable to improvements in air quality as we demonstrate a 46.7% reduction in toxic emissions and a 2.6% decrease in the number of industrial facilities in the area subject to additional monitoring. Conservative estimates suggest that the value of new monitoring stations exceeds $52 billion.

Suggested Citation

Ambrose, Brent W. and Chia, Liu Ee, The Value of Environmental Monitoring: Evidence from the Housing Market (April 01, 2024). Available at SSRN: https://ssrn.com/abstract=4947354 or http://dx.doi.org/10.2139/ssrn.4947354

Brent W. Ambrose

Pennsylvania State University - Department of Insurance & Real Estate ( email )

Smeal College of Business,
Penn State University
University Park, PA US-0-PA 16802
United States
8148670066 (Phone)

HOME PAGE: http://https://sites.psu.edu/brentwambrose/

Liu Ee Chia (Contact Author)

Pennsylvania State University - Smeal College of Business ( email )

University Park, PA 16802
United States

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