Disparities in pollution capitalization rates: the role of direct and systemic discrimination (update)

Zivin, Joshua Graff and Singer, Gregor ORCID: 0000-0001-5917-0723 (2024) Disparities in pollution capitalization rates: the role of direct and systemic discrimination (update). Grantham Research Institute on Climate Change and the Environment Working Papers (392). Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, London, UK.

Text (working-paper-392-Graff-Zivin-Singer-Dec-2024) - Published Version Download (3MB)

• https://www.lse.ac.uk/granthaminstitute/...

Abstract

We examine how exogenous changes in exposure to air pollution over the past two decades have altered the disparities in home values between Black and White homeowners. We find that air quality capitalization rates are significantly lower for Black homeowners. In fact, they are so much lower that, despite secular reductions in the Black-White pollution exposure gap, disparities in housing values have increased during this period. An exploration of mechanisms suggests that roughly two-thirds of this difference is the result of direct discrimination while the remaining one-third can be attributed to systemic discrimination.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/granthaminstitute/publicatio...
Additional Information:	© 2024 The Author(s)
Divisions:	Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HC Economic History and Conditions
JEL classification:	Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R30 - General J - Labor and Demographic Economics > J1 - Demographic Economics > J15 - Economics of Minorities and Races; Non-labor Discrimination
Date Deposited:	23 Jun 2025 11:21
Last Modified:	23 Jun 2025 23:15
URI:	http://eprints.lse.ac.uk/id/eprint/128520

Actions (login required)

View Item