The Impact of Cleaner and Greener Technologies on Residential Property Values in the US

• In Event: Interfield session economics: Trade, Environment, and Industry

Abstract

Previous studies show that the adoption of cleaner and greener technologies benefits decision-makers in the form of cost savings and value creation. However, there are extremely few studies that examine to what extent such technologies benefit communities and the operation of markets. This study provides a comprehensive examination of the impact of pollution management solutions and greener energy technologies on the US housing market. Data obtained from multiple sources are analyzed to answer the following research question: To what extent do locations with (1) less pollution-intensive production, (2) higher greener energy production, and (3) a carbon capture infrastructure benefit their communities in the form of higher residential property values? Our results suggest that zip codes with higher toxic chemical releases and those with higher volumes of energy recovery from toxic wastes have lower home values. We also find that zip codes with a carbon capture and storage infrastructure have on average lower home values compared to other zip codes within the state. Finally, we find residential solar photovoltaics affect home values in a non-linear way where income was found to moderate the impact of photovoltaics on home values. Overall, our empirical analysis supports the hypothesis that the diffusion of cleaner and greener production/abatement technologies could affect residential property values. 

Authors

• Mahelet G. Fikru, Missouri University of Science and Technology

• Melaku Abegaz, University of Wisconsin-River Falls

• Nhien Nguyen, Missouri University of Science and Technology