We analyze the causal effect of air pollution (acute fine particulate matter) exposure on the commercial real estate (CRE) market. We instrument for air pollution using changes in local wind direction to find that an increase in fine particulate matter exposure leads to a contemporaneous decrease in CRE market values and (net) income as well as an increase in capital expenditures. Heterogeneous treatment analysis within a building‐level fixed effects framework uncovers that the negative effect on market values is concentrated in the office sector, consistent with the notion that air pollution‐induced decreases in CRE values are driven by a reduction in CRE assets’ productive capacity. Additionally, we document that the negative impact on (net) income is concentrated in the apartment sector, which is consistent with a broad set of local disamenity mechanisms identified in previous residential real estate literature.

中文翻译：

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商业地产与空气污染

我们分析了空气污染（急性细颗粒物）暴露对商业房地产（CRE）市场的因果影响。我们利用当地风向的变化来测量空气污染，发现细颗粒物暴露的增加会导致商业房地产市场价值和（净）收入同时下降以及资本支出增加。建筑层面固定效应框架内的异质处理分析发现，对市场价值的负面影响集中在办公部门，这与空气污染引起的商业地产价值下降是由商业地产资产生产能力下降驱动的观点一致。 。此外，我们记录了对（净）收入的负面影响集中在公寓行业，这与之前住宅房地产文献中确定的一系列广泛的当地问题机制一致。