La Air pollution and its effect on the price of housing in the MAMAir MAM

  • José Raymundo Galán González Universidad Autónoma de Nuevo León
  • Jorge Raúl Martínez Herrera Universidad Autónoma de Nuevo León
  • Joana Cecilia Chapa Cantú Universidad Autónoma de Nuevo León
  • Karla Ivonne Ramírez Díaz Universidad Autónoma de Nuevo León
  • Sara Hutchinson Tovar Banco de México
DOI: https://doi.org/10.33937/reveco.2021.173
Keywords: air pollution, hedonic models, real estate market.

Abstract

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.

Published
2021-03-12
How to Cite
Galán González, J. R., Martínez Herrera, J. R., Chapa Cantú, J. C., Ramírez Díaz, K. I., & Hutchinson Tovar, S. (2021). La Air pollution and its effect on the price of housing in the MAMAir MAM. Journal of Economics, Faculty of Economics, Autonomous University of Yucatan, 38(96), 9-46. https://doi.org/10.33937/reveco.2021.173
Issue
Vol 38 No 96 (2021): Primer semestre 2021 vol. 38 núm. 96
Section
Original Articles

Copyright (c) 2021 Journal of Economics, Faculty of Economics, Autonomous University of Yucatan

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