Table 2.
The Effect of Toxic Plants on Local Housing Values
| 0–0.5 Miles |
0.5–1 Miles |
0–1 Miles |
0–1 Miles (+/− 2 years) |
|||||
|---|---|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | |
| Panel A. Estimated effect of plant operation | ||||||||
| 1(Plant Operating) × Near |
−0.030*** (0.007) |
−0.022*** (0.006) |
−0.010** (0.005) |
−0.012*** (0.004) |
−0.015*** (0.005) |
−0.014*** (0.004) |
−0.009** (0.004) |
−0.010*** (0.003) |
| Observations (plant-distance- year cells) |
34,736 | 34,736 | 34,736 | 34,736 | 34,736 | 34,736 | 30,492 | 30,492 |
| Plant × distance-bin FE |
X | X | X | X | X | X | X | X |
| State × year FE | X | X | X | X | ||||
| Plant × year FE | X | X | X | X | ||||
| Panel B. First difference: Estimated effect of plant operation | ||||||||
| 1(Plant Operating) × Near |
−0.020** (0.010) |
−0.014** (0.007) |
−0.008* (0.004) |
−0.003 (0.004) |
−0.010** (0.005) |
−0.005 (0.004) |
−0.005 (0.006) |
−0.002 (0.005) |
| Observations | 1,114,248 | 1,114,248 | 1,305,780 | 1,305,780 | 1,375,751 | 1,375,751 | 1,196,000 | 1,196,000 |
| Panel C. First difference: Estimated effect of plant openings and closings | ||||||||
| 1(Plant Opening) × Near |
−0.096*** (0.036) |
−0.107*** (0.034) |
−0.007 (0.023) |
−0.008 (0.020) |
−0.020 (0.022) |
−0.022 (0.019) |
−0.030 (0.028) |
−0.038 (0.025) |
| 1(Plant Closing) × Near |
0.017 (0.011) |
0.010 (0.009) |
0.008 (0.005) |
0.003 (0.004) |
0.010* (0.006) |
0.005 (0.005) |
0.005 (0.007) |
0.001 (0.005) |
| H0: Opening | 0.051 | 0.013 | 0.968 | 0.827 | 0.688 | 0.438 | 0.402 | 0.164 |
| = −Closing (p-value) |
||||||||
| Observations | 1,114,248 | 1,114,248 | 1,305,780 | 1,305,780 | 1,375,751 | 1,375,751 | 1,196,000 | 1,196,000 |
| State × year fixed FE | X | X | X | X | ||||
| County × year FE | X | X | X | X | ||||
Notes: This table reports regression coefficients from 24 separate regressions, 8 per panel, from a sample of 2,171 plants. The dependent variable in all regressions is housing values (in logs). Both the regression sample and the indicator variable “Near” change as one moves across the columns, indicated by the column headings. For example, the specification in columns 1 and 2 examines how group-level average housing values within 0.5 miles of a plant (i.e. “Near”) respond to plant operating status, relative to the comparison group. The comparison group in all columns is homes between 1 and 2 miles from a plant. In columns 7 and 8, the sample removes observations more than two years before and after changes in plant activity. In panel A, the data have been aggregated to plant-by-distance-by-year cells and regressions are weighted by the group-level cell size. Panel B reports the same estimates as panel A using the set of houses we observe selling more than once in our sample and estimating in first differences. Panel C estimates of the asymmetric effect of plant openings/closings using the first difference specification, including p-values from tests that the two coefficients are equal, but of opposite sign. All specifications control for census tract characteristics (interacted with quadratic trends). Standard errors two-way clustered by plant and year are in parentheses.
Significant at the 1 percent level.
Significant at the 5 percent level.
Significant at the 10 percent level.