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An Effect of Air Quality on the Apartment Prices in Seoul: Using Hedonic Price Method
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서울시 아파트 가격에 대한 대기질의 영향 - 헤도닉 가격기법을 이용하여 -

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Type
Academic journal
Author
Choe, Jong Il (고려대학교 경제학과 BK21 한국경제교육연구단) Sim, Sung Hoon (경주대학교 법정대학 부동산학과)
Journal
한국자원경제학회 자원·환경경제연구 자원·환경경제연구 제11권 제2호
Published
2002.1
Pages
261 - 278 (18page)

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An Effect of Air Quality on the Apartment Prices in Seoul: Using Hedonic Price Method
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Based on the hedonic pricing method, this paper investigates the effect of air quality on the apartment price in Seoul. The empirical results show that both the structural variables such as years of construction, heating system, and size of apartment complex and accessability variables such as distances to subway station and parks provide statistically significant effects on the price of apartment, Especially, the dendity of sulfurous acid gas ($SO_2$) and ozone ($O_3$) in the air, indicating air quality, negatively affect the price of apartment, This implies that as the condition of air quality to become worse, apartment price decreases, Therefore, when the degree of aversion of apartment residents against the air pollution affects the formation of apartment's market price, the MWPT(Marginal Willingness to Pay) in order to improve the air quality 10% has been estimated as 36,000~39,000Won per month.

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