Abstract

GALAN GONZALEZ, José Raymundo et al. Air pollution and its effect on the price of housing in the MAM. Rev. econ. [online]. 2021, vol.38, n.96, pp.9-46.  Epub May 07, 2021. ISSN 2395-8715.  https://doi.org/10.33937/reveco.2021.173.

The effects of changes in air pollution levels on the price of housing in the Metropolitan Area of Monterrey (AMM) are determined by applying the hedonic pricing model. The sample consists of 1,722 homes that were for sale during the period April 2017 to March 2018 in the AMM. Among the main results is that an increase of 10% in the percentage of days in the year over the standard established for particles smaller than 2.5 microns (PM2.5) reduces the price of housing by 0.347%; which implies a decrease of 1,239 dollars in the price of the average house. In aggregate terms, the 10% increase in PM2.5 particles amounts to a loss of $ 1,572 million for the AMM.

Keywords : air pollution; hedonic models; real estate market.

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