Book contents
- Frontmatter
- Contents
- List of Figures
- List of Tables
- List of Appendices
- List of Contributors
- Preface
- Chapter 1 Introduction
- Chapter 2 Environmental Valuation: A Review of Methods
- Chapter 3 Valuing the Environment as a Production Input
- Chapter 4 Should Shrimp Farmers Pay Paddy Farmers?: The Challenges of Examining Salinization Externalities in South India
- Chapter 5 Evaluating Gains from De-Eutrophication of the Dutch Canal in Sri Lanka
- Chapter 6 Pesticide Productivity and Vegetable Farming in Nepal
- Chapter 7 Forests, Hydrological Services, and Agricultural Income: A Case Study from the Western Ghats of India
- Chapter 8 Can Mangroves Minimize Property Loss during Big Storms?: An Analysis of House Damages due to the Super Cyclone in Orissa
- Chapter 9 Valuation of Recreational Amenities from Environmental Resources: The Case of Two National Parks in Northern Pakistan
- Chapter 10 Valuing the Land of Tigers: What Indian Visitors Reveal
- Chapter 11 Estimating Welfare Losses from Urban Air Pollution using Panel Data from Household Health Diaries
- Chapter 12 Children in the Slums of Dhaka: Diarrhoea Prevalence and its Implications
- Chapter 13 Red Wells, Green Wells and the Costs of Arsenic Contamination in Bangladesh
- Chapter 14 Air Quality and Cement Production: Examining the Implications of Point Source Pollution in Sri Lanka
- Chapter 15 Revisiting the Need for Improved Stoves: Estimating Health, Time and Carbon Benefits
- Chapter 16 Benefits from Reduced Air Pollution in Delhi and Kolkata: A Hedonic Property Price Approach
- Chapter 17 The Value of Statistical Life
- Chapter 18 An Assessment of Demand for Improved Household Water Supply in Southwest Sri Lanka
- Index
Chapter 16 - Benefits from Reduced Air Pollution in Delhi and Kolkata: A Hedonic Property Price Approach
Published online by Cambridge University Press: 05 November 2012
- Frontmatter
- Contents
- List of Figures
- List of Tables
- List of Appendices
- List of Contributors
- Preface
- Chapter 1 Introduction
- Chapter 2 Environmental Valuation: A Review of Methods
- Chapter 3 Valuing the Environment as a Production Input
- Chapter 4 Should Shrimp Farmers Pay Paddy Farmers?: The Challenges of Examining Salinization Externalities in South India
- Chapter 5 Evaluating Gains from De-Eutrophication of the Dutch Canal in Sri Lanka
- Chapter 6 Pesticide Productivity and Vegetable Farming in Nepal
- Chapter 7 Forests, Hydrological Services, and Agricultural Income: A Case Study from the Western Ghats of India
- Chapter 8 Can Mangroves Minimize Property Loss during Big Storms?: An Analysis of House Damages due to the Super Cyclone in Orissa
- Chapter 9 Valuation of Recreational Amenities from Environmental Resources: The Case of Two National Parks in Northern Pakistan
- Chapter 10 Valuing the Land of Tigers: What Indian Visitors Reveal
- Chapter 11 Estimating Welfare Losses from Urban Air Pollution using Panel Data from Household Health Diaries
- Chapter 12 Children in the Slums of Dhaka: Diarrhoea Prevalence and its Implications
- Chapter 13 Red Wells, Green Wells and the Costs of Arsenic Contamination in Bangladesh
- Chapter 14 Air Quality and Cement Production: Examining the Implications of Point Source Pollution in Sri Lanka
- Chapter 15 Revisiting the Need for Improved Stoves: Estimating Health, Time and Carbon Benefits
- Chapter 16 Benefits from Reduced Air Pollution in Delhi and Kolkata: A Hedonic Property Price Approach
- Chapter 17 The Value of Statistical Life
- Chapter 18 An Assessment of Demand for Improved Household Water Supply in Southwest Sri Lanka
- Index
Summary
Introduction
There are a number of empirical studies, mainly in the developed country context, that use the hedonic property prices approach to estimate the value of environmental goods. The study reported in this chapter is the first of such studies in South Asia. Hedonic prices models (property prices or wages) can be used to estimate a variety of benefits from environmental improvements while other valuation methods like household health production function methods or travel cost methods are specially designed to estimate health benefits or recreational benefits. For example, a generalized hedonic price model analysing house prices, travel costs and wages in an urban area can be used to comprehensively measure the benefits from air pollution reduction.
Hedonic property price models consider the property price as an increasing function of environmental quality, given house characteristics. Similarly, the individual's marginal willingness-to-pay is a decreasing function of environmental quality – this is the inverse demand function for environmental quality. Obtaining estimates of these functions with these required properties depends upon – (a) good quality data and(b) estimation of appropriate functional forms. This chapter uses data collected through two carefully designed household surveys in Delhi and Kolkata, to show the importance of using appropriate functional forms in the estimation of hedonic property value models. It also provides estimates of consumer surplus benefits to households in both the cities from reducing air pollution to a safe level.
South Asia houses some of the urban conglomerations in the world that are worst affected by air pollution.
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- Environmental Valuation in South Asia , pp. 380 - 411Publisher: Cambridge University PressPrint publication year: 2011
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