Template-type: ReDIF-Paper 1.0

Author-Name: Nathaly Rivera
Author-Name-First: Nathaly
Author-Name-Last: Rivera
Author-Workplace-Name: University of Alaska Anchorage

Author-Name: Scott Loveridge
Author-Name-First: Scott
Author-Name-Last: Loveridge
Author-Workplace-Name: Michigan State University

Title: The Coal-to-Gas Fuel Switching and its Effects on Housing Prices
Abstract: We derive causal property value impacts of the coal-to-gas fuel switching conversion implemented by several power plants in the United States. We use an extensive dataset of property transactions around the country and adopt several spatial difference-in-difference approaches that use records of residential property transactions of homes with wind exposure and proximity to the switching plants before and after the switch. A triple-differences control function estimator using coal-fired plants that did not innovate strengthens these estimations. Our results indicate that the shutdown of coal-fired generators increases property values of downwind homes by 15% in the immediate vicinity of fuel-switching plants (< 1.2mi), which brings to light the strong disamenity effect of coal-fired power plants. Our back-of-the-envelope calculations suggest that the fuel switching led to a $1.78 billion-increase in property values around the country.

Classification-JEL: C7, C9, D7, Q2
Keywords: Fossil Fuels, Fuel Switching, Environmental Quality, Housing Market, Environmental Valuation, Hedonic Models

Creation-Date: 2020-03

Number: 2020-01

File-URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA202001.pdf

File-Format: Application/pdf

Handle: RePEc:ala:wpaper:2020-01