Drought and property prices : empirical evidence from Iran

Mohammad Reza Farzanegan, Mehdi Feizi and Hassan Gholipour Fereidouni

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.

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Year of publication:	[2019] ; This version: 28 June 2019
Authors:	Farzanegan, Mohammad Reza ; Feizi, Mehdi ; Fereidouni, Hassan Gholipour
Publisher:	Marburg : Philipps-University Marburg, School of Business and Economics
Subject:	Drought \| Water Crisis \| Property Prices \| Housing \| Iran \| Immobilienpreis \| Real estate price \| Dürre \| Wasserversorgung \| Water supply \| Wasser \| Water