"Five Water Governance",Water Quality And Housing Price

At the beginning of 2014,relying on the input of local finance,Hangzhou actively responded to the strategic measures of “Five Water Governance” in Zhejiang Province.In 2015,the financial input for “Five Water Governance” in districts/counties of Hangzhou accounted for 21% of the general public budget expenditure on average.At present,the effect analysis of environmental governance policies with high financial input focuses on the improvement of urban environment and the improvement of government efficiency,but scholars often ignore the important issue that financial investment leads to the change of residents’ wealth(housing price).This study demonstrates this issue by analyzing the relationship between policies,water quality and housing price,complements the existing research on the effect of “Five Water Governance”,and also helps to understand and improve the practical significance of policies.At the same time,it provides a Chinese example to study the relationship between water environment governance policies and housing price,so as to identify the spatial and temporal effects of water environment on housing price,so as to respond to and supplement the existing research on environmental economics in China.Focusing on the Hangzhou real estate market,taking the Grand Canal and the Shangtang River as the target channels,and in the context of “Five Water Governance”,we conducts natural experiment.We try to investigate changes on housing price and water quality before and after the implementation of the policy.The database of this research institute is the data of second-hand housing transactions within 1.5 kilometers from the Grand Canal and the Shangtang River from2012 to 2015,and the listing information of second-hand houses in the community from 2017 to2019 obtained by crawler.In this study,the hedonic price model,the double difference model and the quantile double difference model are used to analyze.The results show that the Grand Canal and the Shangtang River have significant time and space effects on the housing price of waterfront communities.In spatial effect,the river has bidirectional influence on the waterfront residential price,and the negative influence is mainly caused by water pollution.In terms of time effect,the implementation of the “Five Water Governance” and the change of water quality in the target river have a significant impact on the waterfront residential price.The effect of water quality on housing price is stable and positive.The change of the policy to the housing price needs to be looked at dialectically: in the short term after the implementation of the policy,the water quality has not been improved,and the housing price also shows a downward trend;in the long term after the implementation of the policy,the water quality has been significantly improved and the housing price has been significantly increased,and the impact of the policy and the water quality on the low-cost housing has been more significant.The effectiveness of the “Five Water Governance”also needs to be seen in a dynamic way,but in the long run,it will obviously improve the water environment and benefit the society and the people.