Association Between Environmental Risk And Housing Price

At present,China is in an important historical period of accelerating modernization,deepening economic development and promoting the transformation of social development.However,with the rapid urbanization and industrialization,environmental risk events have occurred frequently in China,causing serious environmental pollution,resulting in a rapid decline of environmental quality and seriously endangering the people’s lives and properties.Living is the most basic survival requirement of human beings,and it is also the most important composition and behavior content of people’s daily life.With the advancement of urbanization,China’s real estate industry has experienced vigorous development for more than a decade.The development of the real estate industry and the improvement of people’s living standards have made China’s residents’awareness of environmental safety and the demand for housing increase accordingly.Residents’demand for housing has shifted from simple survival demand to improvements and hedonic demands,leading to "Not-In-My-Back-Yard" in areas with high environmental risks in cities.However,most of the current researches are based on the distance between house and environmental risk factors or the concentration of pollutants,and do not consider the difference in the actual risk of environmental risk factors.The purpose of this study is to provide a theoretical reference for urban environmental risk management and urban-rural development planning and make up for the gaps of current researches of regional total environmental risk assessment and the real estate sector for environmental risk,by considering the region total environmental risk as a research variable and assessing the association between the regional total environmental risk and housing prices.In this study,chemical companies,gas stations,highways,soil heavy metals,and PM2.5 are selected as the main environmental risk factors.Firstly,five kinds of environmental risks were evaluated and graded by using information diffusion method,exposure-response relationship,ALOHA and other methods;Secondly,using the analytic hierarchy process to determine the weights of the five environmental risk factors to obtain the total environmental risk level of Nanjing.This study finds that the areas with the highest risk in Nanjing are concentrated in the periphery of chemical companies.The total environmental risks in these areas are as high as grade 2.5 and the total environmental risks around the highways and in downtown areas are relatively high,about grade 1.5.The total environmental risks around the city are relatively low and are all below grade 1.0.Then,using the hedonic pricing model,comparing the linear form and the logarithmic linear form,we choose the optimal form of the function to analyze the association between Nanjing’s total environmental risk and the housing price.The study found that there is an "inverted U-shaped" relationship between total environmental risk and housing price.Further analysis found that when the total environmental risk level of residential areas in Nanjing is less than 2,522,there is a positive association between housing price and total environmental risk,that is,the higher the total environmental risk,the higher the housing price;when the total environmental risk level of residential areas in Nanjing is higher than 2.522,there is a negative association between housing price and total environmental risk,that is,the higher the total environmental risk,the lower the housing price.This study also conducted a separate analysis of the five environmental risk factors and found that the five environmental risk factors were not all negatively correlated with housing price.The association between housing price and the environmental risk of PM2.5,the environmental risk of chemical companies,the environmental risk of soil heavy metals,the environmental risk of highways and the environmental risk of gas stations are respectively positive,negative,positive,positive and negative.According to the research results,this paper suggests that:first,relevant departments should strengthen the environmental risk management of chemical companies,gas stations,and highways,make risk emergency preparations,and minimize the risks that may occur when accidents occur in these areas;second,when carrying out urban planning,the government should reasonably consider the current environmental risk situation in the city,disperse the sources of risk as much as possible,and avoid the risk superposition and excessive risks resulting from accumulation of risk sources;third,when residents choose housing,they must consider as many factors as possible.If the conditions permit,more on-site inspections can be conducted to carefully analyze the surrounding environment of the selected housing;forth,when necessary,the government can adopt flexible and appropriate compensation methods.For properties surrounding chemical companies,gas stations and other neighboring facilities,the government can allow residents to pay less housing property taxes to receive compensation,or the government can provide emergency funds to pay for the damage caused by future risk accidents,so as to avoid the impact of facilities on the surrounding residents.