IDEAS home Printed from https://ideas.repec.org/a/spr/envpol/v19y2017i1d10.1007_s10018-015-0136-z.html
   My bibliography  Save this article

Disamenity impact of Nala Lai (open sewer) on house rent in Rawalpindi city

Author

Listed:
  • Irfan Muhammad

    (COMSATS Institute of Information Technology (CIIT))

Abstract

Over time, many natural drains for storm water have turned into open sewers due to the absence of proper sewage systems in Rawalpindi city of Pakistan. The “Nala Lai” is now a fully open sewer that Rawalpindi relies on to get its waste out. In this study, we use the Hedonic property value method to estimate that how disamenity of open sewer system, affect housing prices. We provide estimates of the benefits of converting the open system into a closed sewer system. We find that house rents decrease by approximately 10 % if there is an open sewer (nali) by the house. House rents also increase for homes located further away from the main open drain (Nala Lai)—e.g. a house located 400 m away from the main open drain enjoys a 12 % increase in rent because of its distance. Sewer smell has a depressing effect on rent in those areas where smell remains constant throughout the day. The results suggest that residents are willing to pay to be away from bad odor emanating from the open sewerage system. City planners need to take this into account and consider installing sewerage pipes in open sewer areas, which would change the nature of Nala Lai from a disamenity to an amenity.

Suggested Citation

  • Irfan Muhammad, 2017. "Disamenity impact of Nala Lai (open sewer) on house rent in Rawalpindi city," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 77-97, January.
    • Handle: RePEc:spr:envpol:v:19:y:2017:i:1:d:10.1007_s10018-015-0136-z
    DOI: 10.1007/s10018-015-0136-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10018-015-0136-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10018-015-0136-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cameron, Trudy Ann, 2006. "Directional heterogeneity in distance profiles in hedonic property value models," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 26-45, January.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    3. Follain, James R. & Jimenez, Emmanuel, 1985. "Estimating the demand for housing characteristics: A survey and critique," Regional Science and Urban Economics, Elsevier, vol. 15(1), pages 77-107, February.
    4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    5. Katherine Kiel, 2006. "Environmental Contamination and House Values," Working Papers 0601, College of the Holy Cross, Department of Economics.
    6. Dubin, Robin A, 1998. "Predicting House Prices Using Multiple Listings Data," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 35-59, July.
    7. Brown, Gardner M, Jr & Pollakowski, Henry O, 1977. "Economic Valuation of Shoreline," The Review of Economics and Statistics, MIT Press, vol. 59(3), pages 272-278, August.
    8. Michaels, R. Gregory & Smith, V. Kerry, 1990. "Market segmentation and valuing amenities with hedonic models: The case of hazardous waste sites," Journal of Urban Economics, Elsevier, vol. 28(2), pages 223-242, September.
    9. McMillen, Daniel P. & Jarmin, Ronald & Thorsnes, Paul, 1992. "Selection bias and land development in the monocentric city model," Journal of Urban Economics, Elsevier, vol. 31(3), pages 273-284, May.
    10. Arthur C. Nelson & John Genereux & Michelle Genereux, 1992. "Price Effects of Landfills on House Values," Land Economics, University of Wisconsin Press, vol. 68(4), pages 359-365.
    11. Kiel Katherine A. & McClain Katherine T., 1995. "House Prices during Siting Decision Stages: The Case of an Incinerator from Rumor through Operation," Journal of Environmental Economics and Management, Elsevier, vol. 28(2), pages 241-255, March.
    12. Mark Thayer & Heidi Albers & Morteza Rahmatian, 1992. "The Benefits of Reducing Exposure to Waste Disposal Sites: A Hedonic Housing Value Approach," Journal of Real Estate Research, American Real Estate Society, vol. 7(3), pages 265-282.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngawang Dendup & Kuenzang Tshering, 2018. "Demand for piped drinking water and a formal sewer system in Bhutan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 681-703, July.
    2. William F. Vásquez & Laura Beaudin, 2020. "On the use of hypothetical price data to estimate hedonic models in a developing country context," Letters in Spatial and Resource Sciences, Springer, vol. 13(3), pages 219-231, December.
    3. Leiva, Benjamin & Van Houtven, George & Vásquez, William F. & Nájera, Andrea, 2023. "Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala," Utilities Policy, Elsevier, vol. 82(C).
    4. Touseef Hussain & Jaffar Abbas & Zou Wei & Mohammad Nurunnabi, 2019. "The Effect of Sustainable Urban Planning and Slum Disamenity on The Value of Neighboring Residential Property: Application of The Hedonic Pricing Model in Rent Price Appraisal," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    5. Nur Amira Aina Zulkifli & Shazmin Shareena A. Azis, 2021. "The Effects of Tangible and Intangible Green Elements on Green Residential Value from Professional Perspectives," LARES lares-2021-4dqh, Latin American Real Estate Society (LARES).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Braden & Xia Feng & DooHwan Won, 2011. "Waste Sites and Property Values: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 175-201, October.
    2. Alexandre Tangerini & Nils Soguel, 2005. "Evaluation monétaire de la qualité du paysage. Monetary valuation of the landscape quality," Urban/Regional 0507002, University Library of Munich, Germany.
    3. Alexandre Tangerini & Nils Soguel, 2005. "Evaluation monétaire de la qualité de paysage / Evaluation of the landscape quality," Urban/Regional 0507007, University Library of Munich, Germany.
    4. Katherine Kiel, 2006. "Environmental Contamination and House Values," Working Papers 0601, College of the Holy Cross, Department of Economics.
    5. Ida Ferrara & Stephen McComb & Paul Missios, 2007. "Local Willingness-to-Pay Estimates for the Remediation of the Sydney Tar Ponds in Nova Scotia," Canadian Public Policy, University of Toronto Press, vol. 33(4), pages 441-458, December.
    6. Stefania Tonin & Margherita Turvani, 2011. "Environmental contamination and industrial real estate market: an application of hedonic price method in Italy," ERSA conference papers ersa10p511, European Regional Science Association.
    7. David M. Brasington & Diane Hite, 2005. "Demand for Environmental Quality: A Spatial Hedonic Approach," Departmental Working Papers 2005-08, Department of Economics, Louisiana State University.
    8. Celia Bilbao-Terol, 2009. "Impacts of an Iron and Steel Plant on Residential Property Values," European Planning Studies, Taylor & Francis Journals, vol. 17(9), pages 1421-1436, September.
    9. Fumihiro Yamane & Hideaki Ohgaki & Kota Asano, 2011. "Nuclear Power‐Related Facilities and Neighboring Land Price: A Case Study on the Mutsu‐Ogawara Region, Japan," Risk Analysis, John Wiley & Sons, vol. 31(12), pages 1969-1994, December.
    10. Brasington, David M. & Hite, Diane, 2005. "Demand for environmental quality: a spatial hedonic analysis," Regional Science and Urban Economics, Elsevier, vol. 35(1), pages 57-82, January.
    11. George H. Lentz & Ko Wang, 1998. "Residential Appraisal and the Lending Process: A Survey of Issues," Journal of Real Estate Research, American Real Estate Society, vol. 15(1), pages 11-40.
    12. David E. Clark, 2005. "The Effects of Ignoring Train Whistle Bans on Residential Property Values," Working Papers and Research 0504, Marquette University, Center for Global and Economic Studies and Department of Economics.
    13. Vincenzo Del Giudice & Pierfrancesco De Paola & Paolo Bevilacqua & Alessio Pino & Francesco Paolo Del Giudice, 2020. "Abandoned Industrial Areas with Critical Environmental Pollution: Evaluation Model and Stigma Effect," Sustainability, MDPI, vol. 12(13), pages 1-34, June.
    14. Chau‐Sa Ho & Diane Hite, 2008. "The benefit of environmental improvement in the southeastern United States: Evidence from a simultaneous model of cancer mortality, toxic chemical releases and house values," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 589-604, November.
    15. Diane Hite, 2009. "Factors Influencing Differences between Survey and Market-based Environmental Value Measures," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 117-138, January.
    16. Robert A. Simons & William Bowen & Arthur Sementell, 1997. "The Effect of Underground Storage Tanks on Residential Property Values in Cuyahoga County, Ohio," Journal of Real Estate Research, American Real Estate Society, vol. 14(1), pages 29-42.
    17. Farber, Stephen, 1998. "Undesirable facilities and property values: a summary of empirical studies," Ecological Economics, Elsevier, vol. 24(1), pages 1-14, January.
    18. Ming Li & Guojun Zhang & Yunliang Chen & Chunshan Zhou, 2019. "Evaluation of Residential Housing Prices on the Internet: Data Pitfalls," Complexity, Hindawi, vol. 2019, pages 1-15, February.
    19. Uchenna N. Akpom, 1996. "Housing Attributes And The Cost Of Private Rental Buildings In Lagos Nigeria: A Hedonic Price Analysis," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 351-365, Winter.
    20. Füss, Roland & Koller, Jan A., 2016. "The role of spatial and temporal structure for residential rent predictions," International Journal of Forecasting, Elsevier, vol. 32(4), pages 1352-1368.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:envpol:v:19:y:2017:i:1:d:10.1007_s10018-015-0136-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.