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Environmental and Resource Economics

, Volume 69, Issue 1, pp 23–74 | Cite as

The Effect of Emission Information on Housing Prices: Quasi-Experimental Evidence from the European Pollutant Release and Transfer Register

  • Kathrine von GraevenitzEmail author
  • Daniel Römer
  • Alexander Rohlf
Article

Abstract

In this paper, we study whether the release of pollutant emission information has an effect on housing prices. The event under study is the publication of the first wave of emission quantity data from the European Pollutant Release and Transfer Register in 2009. Our analysis is based on quarterly housing prices at the German postal code level for the years 2007–2011 and provides the first evidence from Europe on this research question. Estimating a differences-in-differences model and controlling for observable differences in land use, housing type distribution, tax revenues and other postal code area characteristics by means of propensity score matching, we find no significant effect of the release of emission information on the value of houses in affected postal code areas. This result survives a number of robustness checks designed to assess whether our findings are due to data aggregation issues or the actual treatment definition. This leads to the conclusion that on an aggregate level the 2009 publication of E-PRTR data did not have an immediate and noticeable effect on housing prices in Germany.

Keywords

Emissions information E-PRTR Housing market Propensity score matching Quasi-experiment 

Notes

Acknowledgments

We gratefully acknowledge funding from the German Ministry for Education and Research (BMBF) under research grant number 01UN1003. Any opinions expressed in the paper are those of the authors and do not necessarily reflect those of the BMBF. We would like to thank Linda Bui, Dietrich Earnhart, Timo Goeschl, Sabine Grimm, Stephen Kastoryano, Nicolai Kuminoff, Jaren Pope, Nicholas Sanders, Alexander Schürt, V. Kerry Smith, Andrea Weber, the audiences at the 2014 Atlantic Workshop on Energy and Environmental Economics, the 2013 AERE summer conference and the 2013 EAERE conference, as well as seminar participants at the Universities of Heidelberg and Mannheim for their valuable comments. We also thank the editor and two anonymous reviewers for their very constructive comments and suggestions.

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Copyright information

© Springer Science+Business Media Dordrecht 2016

Authors and Affiliations

  • Kathrine von Graevenitz
    • 1
    Email author
  • Daniel Römer
    • 2
  • Alexander Rohlf
    • 3
  1. 1.Centre for European Economic Research (ZEW)MannheimGermany
  2. 2.Centre for European Economic Research (ZEW)MannheimGermany
  3. 3.University of MannheimMannheimGermany

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