RESEARCH ARTICLE
The Impact of Polluters' Cleanup on Land Values: Evidence From Pollution-Intensive Industries in China
Xiaofang Dong,
Zenghe Huang,
Corresponding Author
Xiaofang Dong
Wang Yanan Institute for Studies in Economics, Xiamen University, Xiamen, China
Correspondence: Xiaofang Dong ([email protected])
Search for more papers by this authorZenghe Huang
Paula and Gregory Chow Institute for Studies in Economics, Xiamen University, Xiamen, China
Search for more papers by this authorXiaofang Dong,
Zenghe Huang,
Corresponding Author
Xiaofang Dong
Wang Yanan Institute for Studies in Economics, Xiamen University, Xiamen, China
Correspondence: Xiaofang Dong ([email protected])
Search for more papers by this authorZenghe Huang
Paula and Gregory Chow Institute for Studies in Economics, Xiamen University, Xiamen, China
Search for more papers by this authorThe author thanks participants at seminars and conferences at Xiamen University, Harvard University, Peking University, University of Chinese Academy of Sciences, and the 2023 Jinan-SMU Conference on Urban and Regional Economics at Jinan University for their valuable comments. All errors are our own.
ABSTRACT
This study utilizes geocoded land transaction data and information on industrial polluting firms to examine the impact of pollution-intensive firm cleanup on land values in China. Our findings reveal that land parcels with cleanup of at least one heavy polluting enterprise within a 2 km radius experienced a 15.2% increase in land prices compared to those without cleanup. This effect is more pronounced for parcels situated further from the central business district, designated for commercial use, and located in smaller noncapital cities. The emergence of new clean and high-tech firms, along with population growth post-cleanup, are identified as primary drivers behind the upward trend in land values. However, within 500 meters of a cleanup site, there can be adverse effects on adjacent land, although overall, cleanup boosts land values.
Open Research
Data Availability Statement
The data that support the findings of this study are available from the corresponding author upon reasonable request.
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