Using a modified version of the Rosen-Roback model, shows that limited access to air quality information distorts the true value of pollution in housing prices due to perception biases. To validate this theory, disclosure of PM2.5 data in China and find that migration decisions become more sensitive to pollution levels was analyzed. The cost of avoiding PM2.5 exposure nearly doubled, increasing from 171 to 336 Chinese Yuan, in response to the information shock. Findings emphasize the impact of incomplete information on migration choices and non-market valuation in countries with restricted public access to information.

Image courtesy of interviewee. January 10, 2024