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Renewal of waterways in a dense city creates value for residents

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  • Polyakov, Maksym
  • Iftekhar, Md Sayed
  • Fogarty, James
  • Buurman, Joost

Abstract

Water sensitive practices can improve water quality and city livability, but the extent to which these practices improve the welfare of residents is not well researched. We contribute to knowledge in this area using Singapore's Active, Beautiful, Clean Waters (ABC Waters) Program as a case study. The program includes the renovation and integration of drains, canals, and reservoirs with the surrounding environment. To investigate impacts, we analyse real estate transactions within 2000 m of 13 canals that were renovated between 2008 and 2016 as part of the ABC Waters program using both a difference-in-differences hedonic price model and a difference-in-differences exact matching model. To test the robustness of the result, we implement a placebo test by shifting the restoration project dates. We find the value of residential flats within 500 m of renovation sites increase by 1.6% (95% CI 1.0–2.2%) after renovation projects. The empirical strategy and the placebo test results support a causal interpretation of the effect of canal renovation projects on flat prices. The uplift in value for flats within 500 m of canal upgrading projects is estimated to be between S$336 and S$504 million. This exceeds the combined costs of all ABC Waters projects and provides evidence that the benefits of urban waterway renewal projects are greater than the costs.

Suggested Citation

  • Polyakov, Maksym & Iftekhar, Md Sayed & Fogarty, James & Buurman, Joost, 2022. "Renewal of waterways in a dense city creates value for residents," Ecological Economics, Elsevier, vol. 199(C).
    • Handle: RePEc:eee:ecolec:v:199:y:2022:i:c:s0921800922001306
    DOI: 10.1016/j.ecolecon.2022.107468
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    Cited by:

    1. Yuxi Zhu & Jianqiang Yang & Le Zhu & Liping Sun, 2024. "Identification of Ecological Priority Areas Based on Nested-Scale Analysis: A Case Study of Metropolitan Nanjing, China," Land, MDPI, vol. 14(1), pages 1-21, December.
    2. Song, Malin & Du, Juntao, 2024. "Mechanisms for realizing the ecological products value: Green finance intervention and support," International Journal of Production Economics, Elsevier, vol. 271(C).
    3. Akbari, Saloomeh & Polyakov, Maksym & Iftekhar, Md Sayed, 2023. "Capitalised nonmarket benefits of multifunctional water-sensitive urban infrastructure: A case of living streams," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(04), August.

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    More about this item

    Keywords

    Non-market Valuation; Hedonic Model; Water Sensitive Urban Design; Waterways; Singapore;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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