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By Thomas Savage

Dr. Tingting Wu, professor at the School of Accounting and Finance (SAF), specializes in sustainable finance. She recently joined SAF after working with the University of À¶Ý®ÊÓƵ’s School of Environment, Enterprise and Development (SEED), bringing with her a passion for teaching about sustainability to our first-of-its-kind Sustainability and Financial Management (SFM) program. Wu’s research explores the economic and environmental impacts of climate change policies and renewable energy, as well as the influence of environmental factors on corporate financial performance. 

In her latest research, Wu and her co-authors, Dr. Yanting Wu and Dr. Kryzanowski focus on the effects of the 2018 carbon pricing law—the Greenhouse Gas Pollution Pricing Act, or GHGPPA—and how it influences the behaviour of buyers and sellers in the housing market. She specifically focuses on areas with high carbon emissions or pollution, using real estate transaction data to examine how the law is shaping market dynamics. 

When asked about what surprised her over the course of her research, Wu shared, “when we started the project, we expected that pre-owned residential housing prices would rise over time, driven by an increase in the construction costs of new homes. Surprisingly, we found that carbon taxes influence house buyers and sellers in opposite ways, depending on their side of the transaction. It’s encouraging to see that greater awareness of climate change does shift decision-making behaviour. It also reveals the complexity of the market responses — carbon pricing doesn’t just affect prices mechanically; it also interacts with people’s values and perceptions.

Wu found that there was no significant change in overall home prices following the law’s introduction, but this doesn’t mean the policy had no effect. Instead, her findings showed that people's awareness and attitudes were influenced: sellers who were aware of carbon pricing tended to list their homes at higher prices, while informed buyers tended to value those same homes lower. Wu also discovered that geography also played a role, as homes in higher pollution areas took longer to sell and were less likely to sell overall.  

Wu’s research suggests that, in addition to the direct cost impact of carbon pricing on housing transactions, individuals’ awareness and attitudes towards carbon pricing and climate change also significantly influence their decision-making, including housing sales, one of the most important decisions a household can make. 

While carbon pricing hasn’t significantly altered overall housing prices, Wu’s findings highlight its influence on market psychology, especially in higher-emission areas. 

Published in the this research offers valuable insight for policymakers crafting climate legislation and for buyers and sellers navigating a shifting real estate market.