The rapid urbanization of modern cities poses several economic challenges and questions, such as energy efficiency, environmental sustainability, and the distribution of businesses. These elements significantly shape the dynamics of housing markets and urban migration patterns. My dissertation explores the causal impacts of environmental amenities and informational transparency on housing market valuations and the interactions within business sectors.
In the first chapter of this thesis, we study the equilibrium effects of building energy efficiency information on the housing market. Building energy efficiency is crucial for identifying energy-saving potential, yet such information was not publicly available in the past. We examine the equilibrium effects of a regulation in New York City that mandates increased public access to information on building energy efficiency. We find that the effectiveness of disclosure policies in achieving desired market outcomes hinges significantly on the salience of the information disclosed. Our findings suggest that enhancing the salience of building energy efficiency disclosures leads to the emergence of energy efficiency premiums and incentivizes buildings to make energy efficiency improvements. Particularly, luxury buildings exhibit more pronounced responses. We develop and estimate an equilibrium model of demand for homes and building energy efficiency, as well as buildings' choices of energy efficiency levels. The results indicate that the increase in housing prices attributable to energy efficiency improvements significantly exceeds the savings in energy bills.
In the second chapter of this thesis, we the strengths of agglomeration spillovers in the local non-tradable service sector using a comprehensive list of grocery store openings in the U.S. in 2018 -- 2019. We combine deep learning tools with propensity score estimation to find counterfactual opening sites and compare business outcomes surrounding actual and counterfactual sites. We find openings of grocery stores lead to significant growth in foot traffic to their opening locations and a 39 percent increase in foot traffic to businesses within 0.1 miles. The spillovers of demand are strongest between new grocery stores and businesses in wholesale and retail and hospitality services. We also find that grocery store openings lead to a 6.9 percentage point higher growth in the number of businesses within 0.1 miles of the openings 0--3 years later.
My third chapter investigates the economic impacts of cleaning up heavily polluted waterways in urban neighborhoods. We leverage the Black-and-Odorous Water Program, a major urban environmental campaign in China, as a natural experiment to identify the causal impact of cleaner waterways on local housing prices, housing supply, and business growth. Implemented in 2016, the program remediated heavily polluted waterways in China's 36 most developed cities.
Using a difference-in-differences estimator, we find that the program mainly benefits properties within 1 mile of cleaned-up waterways: These properties saw a 2.3% appreciation in market value after the program. Beyond the impacts on the housing market, we identify two novel mechanisms associated with community revitalization following pollution management and examine their implications for housing prices. First, new real estate developments near treated waterways are more likely to offer high-end units after the program. Second, service businesses flourish in neighborhoods near cleaned waterways, indicating a commercial rejuvenation of these areas.
| Identifer | oai:union.ndltd.org:columbia.edu/oai:academiccommons.columbia.edu:10.7916/ey96-fs66 |
| Date | January 2024 |
| Creators | Zhang, Qianyang |
| Source Sets | Columbia University |
| Language | English |
| Detected Language | English |
| Type | Theses |
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