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MODELING THE EFFECTS OF REFINERY EMISSIONS ON RESIDENTIAL PROPERTY VALUES
 

Robert A. Simons
Cleveland State University
Email: r.simons@csuohio.edu

Youngme Seo
Univ.of. Arkansas-LR

Paul Rosenfeld
SWAPE, LA, CA

 

 

Abstract:

This research studied the effects of refinery air pollution on house prices near Houston, Texas. The affected area was identified through AERMOD air modeling of past releases of sulfur dioxide, a proxy for respiratory risk. A total of 3,964 residential MLS sales from 2006-2011 were used to populate an OLS model, a spatial model, and a spatial model with an additional endogenous variable. Findings indicate that air pollution has a significant negative 6-8% loss on house prices. For one year, the negative effect is shown to generally diminish with distance up to about two miles from the refinery.

 
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