The presence of polluting sites in urban contexts: an analysis of the effects on the dynamics of the residential real estate market

Abstract

Introduction: The industrial activity constitutes one of the most driving sectors of a nation, as it is often considered at the center of public debate as the fulcrum of development policies. However, considering the climate impacts generated, many industries have necessarily changed, relocated, and/or interrupted their production. Due to the connection of industrial sites with the socio-economic, environmental, and health systems of cities, the real estate market dynamics can be differently affected by the presence of polluting industrial sites. With reference to the Italian context, the goal of the research is to, firstly, verify whether there is a functional relationship between the presence of polluting industrial sites and the residential real estate market dynamics, for then determining its type and the extent of purchase price affection. Method: The proposed logical-evaluative model is based on the application of an econometric technique for investigating the significance of the industrial sites on the residential real estate dynamics through a set of technological, locational, and health variables. Results: The obtained results show that the total surface area of the polluting sites, the activity level and the industrial plant opening date are among the most relevant variables, instead the accessibility to the industrial site does not influence the real estate market dynamics. Discussion and practical implications: The main practical implication of the present research consists of the possibility to provide a support for the activation of strategies aimed at adopting sustainable development models in the industrial sector.