Impact of carbon prices on household behaviors in housing transactions

This paper studies how greenhouse gas emissions (GHGe) mitigation policy (i.e., 2018 Greenhouse Gas Pollution Pricing Act or GHGPPA implemented by the Government of Canada) impacts sellers' and buyers' behaviors in housing transactions due to their different reactions to the Act's effect on housing transactions from increased carbon-price awareness. We find no net effect on selling prices after the GHGPPA although sellers (buyers) with greater carbon-price awareness list houses higher (value houses lower). The GHGPPA decreases the house-sale likelihood and lengthens the selling time in carbon-impacted areas. Our results are not driven by emission-intensive fuel usage as house heating inputs. (100 Words). • Examine effects of carbon-price awareness (CPA) in carbon-impacted areas. • Use implied effect on CPA around adoption of Canadian GHGPPA. • Sellers (buyers) with greater CPA list houses higher (value houses lower) post-GHGPPA. • No net effect on transacted house prices post-GHGPPA. • Lower house-sale likelihood/longer time-on-market post-GHGPPA.