nep-cwa 2019-07-15 papers

on Central and Western Asia

Issue of 2019‒07‒15
one paper chosen by
Sultan Orazbayev

Drought and Property Prices: Empirical Evidence from Iran By Mohammad Reza Farzanegan; Mehdi Feizi; Hassan F. Gholipour

Drought and Property Prices: Empirical Evidence from Iran

By:	Mohammad Reza Farzanegan (Philipps-Universitaet Marburg); Mehdi Feizi (Ferdowsi University of Mashhad); Hassan F. Gholipour (Swinburne University of Technology)
Abstract:	This study demonstrates an economic consequence of climate change and water crises in Iran. It examines the effect of drought on housing prices, residential land prices, and housing rents in Iran. Using data from provinces of Iran from 1993 to 2015 and applying static and dynamic panel fixed effects estimators, we find evidence that an increase in the balance of water (reducing the severity of drought) within provinces has a positive effect on property prices. Our results have important implications for Iranian policymakers and property investors.
Keywords:	Drought; Water Crisis; Property Prices; Housing; Iran
JEL:	R21 R31 Q54
Date:	2019
URL:	http://d.repec.org/n?u=RePEc:mar:magkse:201916&r=all

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