The Disclosure of Pollution Information and the Public's Response—Evidence from the Housing Market
Using the transaction data of 5000 sampled residential communities in 20 cities in China from 2009 to 2018,we explore the impact of disclosure of pollution information on housing prices.The results suggest that people's willingness to pay for houses surrounding the polluted firms has dropped sig-nificantly after disclosing pollution information.The mechanism analysis reveals that the stigma effects due to the disclosure of pollution information reduce the housing prices of surrounding residential commu-nities.Our results also highlight the importance of pollution information disclosure to the public.
disclosure of pollution informationhousing marketstigma effect