Hedonic Price Functions for Zurich and Lugano with Special Focus on Electrosmog

This paper evaluates the impacts of electrosmog, noise and air pollution on the dwellings’ rents in the cities of Zurich and Lugano. The hedonic price regressions are estimated using a large micro-level data set and taking into account the spatial correlation in unobserved factors. The results suggest that the presence of mobile phone antenna has a negative impact on the rent, but this effect is not statistically significant in Lugano. In addition, PM10 density and the level of noise at night have a significant negative impact on the rent. Accounting for spatial correlation has little effect on the coefficient estimates.