The impact of waste-to-energy incineration plants and its information disclosure on property values: evidence from Hangzhou, China

Abstract

This study quantifies the negative externalities of waste-to-energy (WTE) incineration plants and evaluates the efficacy of information disclosure policies in Hangzhou, China. Using a novel compiled dataset on real estate transactions and construction information on WTE incineration plants, we employ a hedonic price model to examine property value fluctuations near incinerators. The results show that incinerators reduce the sale prices of adjacent residential properties within a 6-km radius, while the observed effect varies across years, regions, and incineration capacities. Nevertheless, the results of the regression discontinuity difference-in-differences analysis demonstrate that the implementation of information disclosure ordinances on incineration plants can promisingly reduce the adverse economic effects of incinerators on surrounding properties. This study underlines the favorable role of environmental information disclosure in alleviating the “not-in-my-backyard” conflicts when planning environmentally hazardous facilities.