Estimation of Property Value Changes from Nearby Carbon Capture and Utilization Projects in China

We investigate the local impacts of carbon capture, and utilization project (CCU) technologies and facilities on nearby property values with Difference-in-Difference and Triple difference method based on housing transaction data from 2006 to 2019 in China. CCU projects may impose certain environmental concerns to local communities. Results show that property values decrease by 5.5-5.9% after the construction of a CCU facility within a 3.6 km distance on average. In particular, CCU-RE (CCU technologies on existing carbon emission sources), CCU-NB (CCU technology applied to new carbon emission sources) and CCU-NB-CCU (CCU embedded in the CCU-NB) project lowers property values by 5.9%, 7.3%, and 5.5-5.8%, respectively. Negative price effects may come from the increase in air pollutants following the installation of CCU, including an increase of about 5.1% for NO2, 11.9% for SO2, 1.7% for O3, and 0.7% for CO. Our results provide important policy implications for the future development of CCU projects.