A Study On The Willingness Of Beijing Residents To Pay For Air Quality Based On The Perspective Of Housing Prices

In recent years,China's national income has been increasing,people's demands for clean environment are getting higher and higher.As a part of environmental resources,clean air has its value,and air pollution which is the hardest to escape has attracted most attention in reality.In the process of air pollution reduction,the government financing measures and financing sources are often difficult to quantify.It is of great theoretical and practical significance to assess the air quality improvement.Due to the absence of open market price,the contingent valuation method is more subjective in the field of public goods pricing.In this paper,we use the hedonic pricing model to treat air quality as a feature of the dwelling,so that we could estimate the price of air quality which is separated from a bunch of features in real transaction price data of the residential market.Based on the second-hand housing transaction data and the air quality data of the air quality monitoring stations in Beijing,most of the existing literatures did not take into account the recent space-related factors of housing prices,and thus may underestimate the price of housing characteristics.In this paper,spatial autocorrelation model is used to explain the spatial autocorrelation part.After controlling some other factors,the environmental quality of air quality is estimated accurately.The method of geographically weighted regression is used to study the difference between the air quality valuation in different geographical locations.And the spatial quantile regression method takes into account the difference of the air quality valuation between the buyers in the high-end and low-end housing market.The empirical results of the second-hand housing transaction data for the residential market in Beijing in September 2015 show that,(1)after the introduction of spatial autocorrelation,the mean return in the traditional sense tells us that home buyers are reluctant to pay for air quality.But the spatial quantile regression results show that low-end residential buyers are reluctant to pay for the air quality.Unit price 80% quantile buyers are willing to pay an reduction of additional unit AQI index about 285 yuan,90% quantile buyers are willing to decrease an additional unit AQI index on a payment of 583 yuan.From this perspective it can be concluded: clean air seems to have become luxury which ordinary residents/consumers do not want to afford.(2)After splitting a north subsample and south subsample,the results of spatial quantile regression clearly show that high-end residential buyers in Beijing south part are more willing to pay for clean air.(3)DID result also shows that compared to the low-end housing consumer,education makes high-end housing consumers aware of air quality more deeply,improve their willingness to pay for the clean air.Finally,according to the empirical part of the conclusion,in the sense of the average valuation,most low-end housing consumers do not want to bear the cost of air pollution control.Therefore,(1)compared to a simple and rude environmental-related tax policy which collect taxes in the real estate transaction part,it should be more reasonable find the solution in supply side,that is to say,to start from air pollution supply side,let the air pollution-related enterprises to suffer a heavily punishment which means an increasement in the cost of environmental pollution.Of course,(2)actions that are easier to implement and more economically on air quality improvement should be primarily in the field of advocacy and education.Government should increase the air quality-related knowledge of propaganda,improve the residents of the air quality attention,and guide the residents to form a good value judgments,lead public to the haze governance together.