Resumen de Measuring the impact of pollution on property prices: objetive vs. subjetive pollution indicators in spatial models
José María Montero Lorenzo, Román Mínguez Salido, Gema Fernández-Avilés Calderón
Much work has been done in the context of the hedonic price theory to estimate the impact of air quality on housing prices. Hedonic specifications have improved enormously compared to the early models and current research even considers the spatial argument as a key factor. However, in the best of cases, empirical research only slightly confirms the hedonic theory. These empirical results go against both common sense and theory, which led us to suspect that the problem is not specification but the way air quality is measured. Research has been conducted using objective measures of air quality, but probably what house buyers include in their utility function is their perception of such quality. Thus, subjective measures are needed.
In this article we propose a kind of spatial hedonic models and compare the results obtained with objective and subjective measures of air quality in Madrid (Spain). Results are quite different and suggest that perceived air quality measures are the variable to be included when applying a hedonic house price model
