15 Mar '24
Finance Seminars | Friday Finance Seminar with Professor Marco Grotteria

The Professor will present the paper ''The effects of environmental health risks on housing values and minorities''

Abstract: Focusing on a narrow window around the time in whicha plant first reports releasing known carcinogenic toxins and a narrow geographical area around the plant, we show:
a) an increase in cancer risk near the plant, and b) a decline in property values ranging from -0.8% to -2% for houses closer to the plant. A back-of-the-envelope calculation implies a value of statistical life ranging from $2.6M to $6.4M. Our analysis reveals a shift towards a higher presence of minority and higher credit-risk households in affected areas. This shift provides important evidence on the social dynamics at play in the wake of a change in the perceived environmental hazards, contributing to the ongoing discussion on environmental justice.

Finance Seminar with Professor Marco Grotteria
  • On 15 March 2024