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

Irfan Muhammad ()
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Irfan Muhammad: COMSATS Institute of Information Technology (CIIT)

Environmental Economics and Policy Studies, 2017, vol. 19, issue 1, No 5, 77-97

Abstract: 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.

Keywords: Disamenity values; Open sewer; Hedonic prices; Rent; Willingness-to-pay; Pakistan (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10018-015-0136-z

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