Pub Date : 2025-05-03DOI: 10.1016/j.jeem.2025.103165
Johannes Brehm , Nico Pestel , Sandra Schaffner , Laura Schmitz
Do long-term improvements in air quality influence children’s educational outcomes? This paper investigates the impact of Low Emission Zones (LEZs), which restrict access to designated areas for emission-intensive vehicles, on the educational achievement of elementary school students in Germany. Using school-level data from North Rhine-Westphalia, Germany’s most populous state, we exploit the staggered introduction of LEZs since 2008 with a difference-in-differences approach. LEZ implementations increase transition rates to the academic track in secondary education by approximately one percentage point, or 2.4 percent. We validate this finding using more aggregated district-level data across all of Germany. Our findings imply sizable educational co-benefits of reductions in air pollution.
{"title":"From Low Emission Zone to academic track: Environmental policy effects on educational achievement in elementary school","authors":"Johannes Brehm , Nico Pestel , Sandra Schaffner , Laura Schmitz","doi":"10.1016/j.jeem.2025.103165","DOIUrl":"10.1016/j.jeem.2025.103165","url":null,"abstract":"<div><div>Do long-term improvements in air quality influence children’s educational outcomes? This paper investigates the impact of Low Emission Zones (LEZs), which restrict access to designated areas for emission-intensive vehicles, on the educational achievement of elementary school students in Germany. Using school-level data from North Rhine-Westphalia, Germany’s most populous state, we exploit the staggered introduction of LEZs since 2008 with a difference-in-differences approach. LEZ implementations increase transition rates to the academic track in secondary education by approximately one percentage point, or 2.4 percent. We validate this finding using more aggregated district-level data across all of Germany. Our findings imply sizable educational co-benefits of reductions in air pollution.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103165"},"PeriodicalIF":5.5,"publicationDate":"2025-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143941198","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-01Epub Date: 2025-02-26DOI: 10.1016/j.jeem.2025.103148
David J. Pannell , Robert J. Johnston , Michael P. Burton , Md Sayed Iftekhar , Abbie A. Rogers , Cheryl Day
Information on non-market values has the potential to improve decision making but approaches to measure these values are costly and may be inaccurate. This study develops a Bayesian value of information (VOI) model to evaluate when and if the benefit of conducting a non-market valuation (NMV) study exceeds the cost, and which method of those considered delivers the highest expected net benefit. The approach is illustrated using a water quality improvement decision, with VOI estimated for stated preference, revealed preference and benefit transfer methods, the first two implemented at varying degrees of best practice. Information on the anticipated accuracy of each valuation method is derived via structured expert-elicitation. Results show that the net VOI from NMV studies varies widely and depends on multiple factors, including project scale, the quality of existing knowledge, the accuracy of NMV methods, the type of values measured (e.g., use versus nonuse values) and the costs of applying each method. Findings suggest that familiar narratives regarding the value of NMV estimates may be too simplistic, suggesting that a more nuanced approach to study application is warranted. Although demonstrated for one case study, the approach can be adapted to many decision settings.
{"title":"The value of a value: The benefits of improved decision making informed by non-market valuation","authors":"David J. Pannell , Robert J. Johnston , Michael P. Burton , Md Sayed Iftekhar , Abbie A. Rogers , Cheryl Day","doi":"10.1016/j.jeem.2025.103148","DOIUrl":"10.1016/j.jeem.2025.103148","url":null,"abstract":"<div><div>Information on non-market values has the potential to improve decision making but approaches to measure these values are costly and may be inaccurate. This study develops a Bayesian value of information (VOI) model to evaluate when and if the benefit of conducting a non-market valuation (NMV) study exceeds the cost, and which method of those considered delivers the highest expected net benefit. The approach is illustrated using a water quality improvement decision, with VOI estimated for stated preference, revealed preference and benefit transfer methods, the first two implemented at varying degrees of best practice. Information on the anticipated accuracy of each valuation method is derived via structured expert-elicitation. Results show that the net VOI from NMV studies varies widely and depends on multiple factors, including project scale, the quality of existing knowledge, the accuracy of NMV methods, the type of values measured (e.g., use versus nonuse values) and the costs of applying each method. Findings suggest that familiar narratives regarding the value of NMV estimates may be too simplistic, suggesting that a more nuanced approach to study application is warranted. Although demonstrated for one case study, the approach can be adapted to many decision settings.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103148"},"PeriodicalIF":5.5,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143549846","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-29DOI: 10.1016/j.jeem.2025.103178
Daichi Yamada , Daiju Narita
We empirically examine the effects of fine particulate matter (PM2.5) pollution on labor supply based on data from Japan, a country in which the PM2.5 level is generally low to moderate. PM2.5 can adversely affect health and cause affected workers to reduce labor supply, whereas workers and firms can take reactive measures to mitigate labor supply losses. We aim to investigate the causal effects of PM2.5 pollution, managing potential endogeneity of PM2.5 pollution by using nationally representative panel data and utilizing two exogenous phenomena: thermal inversion events and transboundary pollution transport from the Asian continent. The results robustly show that increases in PM2.5 levels decrease monthly labor hours. Even moderate levels of PM2.5 pollution affect labor supply on a national scale. Our findings are related to current international discussions on low-to-moderate levels of air pollution.
{"title":"Effects of air pollution on labor supply: Evidence from Japan","authors":"Daichi Yamada , Daiju Narita","doi":"10.1016/j.jeem.2025.103178","DOIUrl":"10.1016/j.jeem.2025.103178","url":null,"abstract":"<div><div>We empirically examine the effects of fine particulate matter (PM<sub>2.5</sub>) pollution on labor supply based on data from Japan, a country in which the PM<sub>2.5</sub> level is generally low to moderate. PM<sub>2.5</sub> can adversely affect health and cause affected workers to reduce labor supply, whereas workers and firms can take reactive measures to mitigate labor supply losses. We aim to investigate the causal effects of PM<sub>2.5</sub> pollution, managing potential endogeneity of PM<sub>2.5</sub> pollution by using nationally representative panel data and utilizing two exogenous phenomena: thermal inversion events and transboundary pollution transport from the Asian continent. The results robustly show that increases in PM<sub>2.5</sub> levels decrease monthly labor hours. Even moderate levels of PM<sub>2.5</sub> pollution affect labor supply on a national scale. Our findings are related to current international discussions on low-to-moderate levels of air pollution.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103178"},"PeriodicalIF":5.5,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143916606","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-29DOI: 10.1016/j.jeem.2025.103166
Jacob Gellman , Margaret Walls , Matthew Wibbenmeyer
Wildfire smoke pollution is growing in the western United States. Estimates of health impacts from smoke are numerous, but few revealed preference estimates of its damages exist. We study a setting where individuals are directly exposed to smoke and where avoidance behavior is measured with high frequency: outdoor recreation. We combine millions of administrative campground reservation records with satellite data on wildfire, smoke, and air pollution. The data allow us to model sequential recreation decisions under evolving information using a novel control function approach. We estimate wildfire smoke reduces welfare by $107 per person per trip. These damages are larger when campgrounds are affected by consecutive days of smoke. Back-of-the-envelope calculations imply 21.5 million outdoor recreation visits in the western United States are affected by smoke every year, with annual welfare losses of $2.3 billion. These findings contribute to a growing body of evidence on the costs of wildfire smoke.
{"title":"Welfare losses from wildfire smoke: Evidence from daily outdoor recreation data","authors":"Jacob Gellman , Margaret Walls , Matthew Wibbenmeyer","doi":"10.1016/j.jeem.2025.103166","DOIUrl":"10.1016/j.jeem.2025.103166","url":null,"abstract":"<div><div>Wildfire smoke pollution is growing in the western United States. Estimates of health impacts from smoke are numerous, but few revealed preference estimates of its damages exist. We study a setting where individuals are directly exposed to smoke and where avoidance behavior is measured with high frequency: outdoor recreation. We combine millions of administrative campground reservation records with satellite data on wildfire, smoke, and air pollution. The data allow us to model sequential recreation decisions under evolving information using a novel control function approach. We estimate wildfire smoke reduces welfare by $107 per person per trip. These damages are larger when campgrounds are affected by consecutive days of smoke. Back-of-the-envelope calculations imply 21.5 million outdoor recreation visits in the western United States are affected by smoke every year, with annual welfare losses of $2.3 billion. These findings contribute to a growing body of evidence on the costs of wildfire smoke.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103166"},"PeriodicalIF":5.5,"publicationDate":"2025-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143894528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-24DOI: 10.1016/j.jeem.2025.103162
Wenjie Wu , Zhe Yang , Jun Hyung Kim , Ai Yue
Daily exposure to suboptimal temperature with inadequate protection can undermine children’s development, but evidence is limited in the range of temperature and the set of developmental outcomes. Using a unique panel study in disadvantaged rural communities, we find that children’s exposures to low temperature undermine cognitive development during early childhood. In addition, caregiver–child interactions and material investments are lower for households exposed to low temperature, highlighting their limited capacity to adapt and the potential for persistent effects on children’s long-term outcomes through home environment. Our findings show the need to account for a broad range of temperature variations when promoting children’s development, and propose home environment as a novel policy channel to counter the negative temperature effects on children.
{"title":"Effects of temperature exposures on early childhood cognitive development and home environment","authors":"Wenjie Wu , Zhe Yang , Jun Hyung Kim , Ai Yue","doi":"10.1016/j.jeem.2025.103162","DOIUrl":"10.1016/j.jeem.2025.103162","url":null,"abstract":"<div><div>Daily exposure to suboptimal temperature with inadequate protection can undermine children’s development, but evidence is limited in the range of temperature and the set of developmental outcomes. Using a unique panel study in disadvantaged rural communities, we find that children’s exposures to low temperature undermine cognitive development during early childhood. In addition, caregiver–child interactions and material investments are lower for households exposed to low temperature, highlighting their limited capacity to adapt and the potential for persistent effects on children’s long-term outcomes through home environment. Our findings show the need to account for a broad range of temperature variations when promoting children’s development, and propose home environment as a novel policy channel to counter the negative temperature effects on children.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103162"},"PeriodicalIF":5.5,"publicationDate":"2025-04-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143883107","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-11DOI: 10.1016/j.jeem.2025.103155
Hanming Fang , King King Li , Peiyao Shen
Coal heating in residential homes is an important source of indoor air pollution, leading to detrimental health effects. We conduct a randomized field experiment in northern China using three types of SMS campaigns targeting three potential biases that may hinder the adoption of electric heating: Cost SMS campaign, designed to address the overestimation of electricity expenses; Health SMS campaign, aimed at addressing the underestimation of health damage associated with coal heating; and Social Comparison SMS campaign, intended to inform households about the popularity of electric heating. We find that the Cost SMS backfires: it instead leads to a substantial reduction in electric heating. This can be attributed to salience bias induced by the Cost SMS, which drew heightened attention to the cost of electricity. The Health SMS is ineffective for households that underestimate the health damage of coal heating. Social Comparison SMS is only effective for a small proportion of households who were concerned about their neighbors’ heating choices. Overall, our findings suggest that SMS campaigns targeting these biases are largely ineffective, and caution should be exercised when applying plausible nudge interventions. The findings also suggest that households may be motivated to maintain their beliefs and resist paternalistic interventions.
{"title":"To go electric or to burn coal? A randomized field experiment of informational nudges","authors":"Hanming Fang , King King Li , Peiyao Shen","doi":"10.1016/j.jeem.2025.103155","DOIUrl":"10.1016/j.jeem.2025.103155","url":null,"abstract":"<div><div>Coal heating in residential homes is an important source of indoor air pollution, leading to detrimental health effects. We conduct a randomized field experiment in northern China using three types of SMS campaigns targeting three potential biases that may hinder the adoption of electric heating: Cost SMS campaign, designed to address the overestimation of electricity expenses; Health SMS campaign, aimed at addressing the underestimation of health damage associated with coal heating; and Social Comparison SMS campaign, intended to inform households about the popularity of electric heating. We find that the Cost SMS backfires: it instead leads to a substantial reduction in electric heating. This can be attributed to salience bias induced by the Cost SMS, which drew heightened attention to the cost of electricity. The Health SMS is ineffective for households that underestimate the health damage of coal heating. Social Comparison SMS is only effective for a small proportion of households who were concerned about their neighbors’ heating choices. Overall, our findings suggest that SMS campaigns targeting these biases are largely ineffective, and caution should be exercised when applying plausible nudge interventions. The findings also suggest that households may be motivated to maintain their beliefs and resist paternalistic interventions.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103155"},"PeriodicalIF":5.5,"publicationDate":"2025-04-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143847790","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-10DOI: 10.1016/j.jeem.2025.103160
Carina Cavalcanti , Andreas Leibbrandt
This field study investigates the characteristics and preferences of artisanal fishers who continue their profession in a lake afflicted by overfishing. We relate their economic preferences, fishing data, social networks, and socio-demographic information to their decision to either persist or discontinue fishing 4 and 15 years later. Our findings reveal that an increasing portion of fishers have chosen to cease fishing over time. We observe that the fisher's risk preference is an important factor for persistence: More risk-averse fishers are more likely to endure in their fishing endeavors. We also find evidence that better socially integrated, older, and less educated individuals are more persistent. In contrast, we do not observe any notable relationships between persistence and the individual extent of overfishing or social preferences. These insights offer valuable novel knowledge regarding the evolving dynamics of resource user groups. By understanding these factors, policymakers and managers can optimize their approach to designing effective management practices and policies.
{"title":"Die hard: Exploring the characteristics of resource users who persist in the tragedy of the commons","authors":"Carina Cavalcanti , Andreas Leibbrandt","doi":"10.1016/j.jeem.2025.103160","DOIUrl":"10.1016/j.jeem.2025.103160","url":null,"abstract":"<div><div>This field study investigates the characteristics and preferences of artisanal fishers who continue their profession in a lake afflicted by overfishing. We relate their economic preferences, fishing data, social networks, and socio-demographic information to their decision to either persist or discontinue fishing 4 and 15 years later. Our findings reveal that an increasing portion of fishers have chosen to cease fishing over time. We observe that the fisher's risk preference is an important factor for persistence: More risk-averse fishers are more likely to endure in their fishing endeavors. We also find evidence that better socially integrated, older, and less educated individuals are more persistent. In contrast, we do not observe any notable relationships between persistence and the individual extent of overfishing or social preferences. These insights offer valuable novel knowledge regarding the evolving dynamics of resource user groups. By understanding these factors, policymakers and managers can optimize their approach to designing effective management practices and policies.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103160"},"PeriodicalIF":5.5,"publicationDate":"2025-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143830202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-10DOI: 10.1016/j.jeem.2025.103158
ShiYi Chen , EnDong Liang , ChaoLiang Liu
Rich evidence shows that the large and more developed cities in China (as in many other countries) enforce stricter environmental regulations. On one hand, stringent regulations have negative impacts on the local labor market, leading to labor outflow into small cities with lower productivity and “dirtier” industrial structure. On the other hand, better environment quality (as a result of the regulations) is also an attraction for domestic immigrants. This paper is the first to use a quantitative spatial model to study the consequences of spatially “size-dependent” urban environmental policies. We find that higher aggregate productivity and fewer total emissions can be simultaneously achieved by reducing the existing “size-dependent” variation of environmental regulations in China. Moreover, to meet a given overall abatement target, urging the largest cities to further tighten the regulations may do the most damage to the economy.
{"title":"“Size-dependent” environmental regulations and spatial labor allocation","authors":"ShiYi Chen , EnDong Liang , ChaoLiang Liu","doi":"10.1016/j.jeem.2025.103158","DOIUrl":"10.1016/j.jeem.2025.103158","url":null,"abstract":"<div><div>Rich evidence shows that the large and more developed cities in China (as in many other countries) enforce stricter environmental regulations. On one hand, stringent regulations have negative impacts on the local labor market, leading to labor outflow into small cities with lower productivity and “dirtier” industrial structure. On the other hand, better environment quality (as a result of the regulations) is also an attraction for domestic immigrants. This paper is the first to use a quantitative spatial model to study the consequences of spatially “size-dependent” urban environmental policies. We find that higher aggregate productivity and fewer total emissions can be simultaneously achieved by reducing the existing “size-dependent” variation of environmental regulations in China. Moreover, to meet a given overall abatement target, urging the largest cities to further tighten the regulations may do the most damage to the economy.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103158"},"PeriodicalIF":5.5,"publicationDate":"2025-04-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143852306","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-04DOI: 10.1016/j.jeem.2025.103154
Elisabeth T. Isaksen , Bjørn G. Johansen
Decarbonizing transportation requires a shift from conventional to zero-emission vehicles. We examine whether congestion pricing with electric vehicle (EV) exemptions accelerates this transition by encouraging a shift toward cleaner cars. To identify causal effects, we combine administrative data on car ownership with a triple-differences design that exploits household-level variation in policy exposure across metropolitan areas and work commutes. We find that higher rush hour charges for conventional vehicles significantly increase EV adoption, primarily through replacement rather than fleet expansion. However, responses vary by socioeconomic characteristics, with higher-income and well-educated households more likely to adopt EVs. Beyond car ownership, we document behavioral adjustments, including relocation to avoid tolls, re-routing around the cordon, and shifting travel timing. Overall, congestion pricing reduced traffic volumes and improved air quality. Our findings offer insights for designing equitable and effective transportation policies.
{"title":"Congestion pricing with electric vehicle exemptions: Car-ownership effects and other behavioral adjustments","authors":"Elisabeth T. Isaksen , Bjørn G. Johansen","doi":"10.1016/j.jeem.2025.103154","DOIUrl":"10.1016/j.jeem.2025.103154","url":null,"abstract":"<div><div>Decarbonizing transportation requires a shift from conventional to zero-emission vehicles. We examine whether congestion pricing with electric vehicle (EV) exemptions accelerates this transition by encouraging a shift toward cleaner cars. To identify causal effects, we combine administrative data on car ownership with a triple-differences design that exploits household-level variation in policy exposure across metropolitan areas and work commutes. We find that higher rush hour charges for conventional vehicles significantly increase EV adoption, primarily through replacement rather than fleet expansion. However, responses vary by socioeconomic characteristics, with higher-income and well-educated households more likely to adopt EVs. Beyond car ownership, we document behavioral adjustments, including relocation to avoid tolls, re-routing around the cordon, and shifting travel timing. Overall, congestion pricing reduced traffic volumes and improved air quality. Our findings offer insights for designing equitable and effective transportation policies.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"131 ","pages":"Article 103154"},"PeriodicalIF":5.5,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143816631","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-04-03DOI: 10.1016/j.jeem.2025.103159
Yue Yu , Qianyang Zhang
This study investigates the economic impacts of cleaning up heavily polluted waterways in urban neighborhoods. We leverage the Black-and-Odorous water program, a major urban environmental campaign in China, as a natural experiment to identify the causal impact of cleaner waterways on local housing prices, housing supply, and business growth. Implemented in 2016, the program remediated heavily polluted waterways in China’s 36 most developed cities. Using a difference-in-differences estimator, we find that the program mainly benefits properties within 1 mile of cleaned-up waterways: These properties saw a 2.3 % appreciation in market value after the program. Beyond the impacts on the housing market, we identify two novel mechanisms associated with community revitalization following pollution management and examine their implications for housing prices. First, new real estate developments near treated waterways are more likely to offer high-end units after the program. Second, service businesses flourish in neighborhoods near cleaned waterways, indicating a commercial rejuvenation of these areas.
{"title":"The value of cleaner waterways: Evidence from the Black-and-Odorous water program","authors":"Yue Yu , Qianyang Zhang","doi":"10.1016/j.jeem.2025.103159","DOIUrl":"10.1016/j.jeem.2025.103159","url":null,"abstract":"<div><div>This study investigates the economic impacts of cleaning up heavily polluted waterways in urban neighborhoods. We leverage the Black-and-Odorous water program, a major urban environmental campaign in China, as a natural experiment to identify the causal impact of cleaner waterways on local housing prices, housing supply, and business growth. Implemented in 2016, the program remediated heavily polluted waterways in China’s 36 most developed cities. Using a difference-in-differences estimator, we find that the program mainly benefits properties within 1 mile of cleaned-up waterways: These properties saw a 2.3 % appreciation in market value after the program. Beyond the impacts on the housing market, we identify two novel mechanisms associated with community revitalization following pollution management and examine their implications for housing prices. First, new real estate developments near treated waterways are more likely to offer high-end units after the program. Second, service businesses flourish in neighborhoods near cleaned waterways, indicating a commercial rejuvenation of these areas.</div></div>","PeriodicalId":15763,"journal":{"name":"Journal of Environmental Economics and Management","volume":"132 ","pages":"Article 103159"},"PeriodicalIF":5.5,"publicationDate":"2025-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144069331","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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