Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/312065.2 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11555
Version Description: 
This Version: August 2025
Publisher: 
CESifo GmbH, Munich
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 60% of this difference is the result of direct discrimination while the remaining 40% can be attributed to systemic discrimination.
Subjects: 
house prices
environmental justice
air pollution
race
discrimination
JEL: 
Q51
R30
J15
Document Type: 
Working Paper
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2 10419/312065.2 This Version: August 2025
1 10419/312065 Original Version: December 2024

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