Air pollution is a major environmental issue in China. This paper exploits the relocation of two major power plants in a key city as a quasi-natural experiment to examine the effect of changes in the quality of the environment on the housing market. We use an extensive transaction dataset of new...

A common finding in the literature is that pollution worsens with economic growth but then decreases after the GDP per capita reaches a certain threshold, which lends support to the Environmental Kuznets Curve (EKC) hypothesis. However, we argue that the environmental turning point could not be...