Assessing the relationship between particulate matter concentration and property values in Spanish cities

Abstract

In recent years, air pollution has become the leading cause of illness and premature deaths worldwide, with adverse impacts on human health, the environment, and the economy. This empirical study aims to investigate the relationship between air quality and property values with a focus on six Spanish cities. The study utilizes property prices as a variable and particulate matter concentration as an air quality indicator. Key findings indicate a significant correlation between particulate matter and property prices in seaside cities, revealing a discernible relationship. However, in inland cities, the observed correlation is notably weak and nonsignificant, resulting in a negligible association between the two variables. These results highlight the presence of additional characteristics that influence property values beyond air quality, particularly in areas where air quality is already deemed satisfactory. This research contributes valuable insights into the intricate interplay between air quality and property values by providing nuanced perspectives on urban planning and policy formulation.