Benefits from Reduced Air Pollution in Delhi and Kolkata: A Hedonic Property Price Approach

Do neighbourhood facilities matter for slum housing? Evidence from Indian slum clusters

“…It is assumed that the household’s demand price or willingness to pay for the housing attribute is a function of its level, income and other household variables which influence taste and preferences of the household (Freeman, 1979). Thus, β E j is defined as a function of A E j , other housing attributes and a vector of socioeconomic characteristics (G) of the household as shown in Equation 5 (Murty et al, 2011).…”

“…This way the hedonic model estimation is a two-step procedure; the hedonic equation is specified first, which is called the first stage of model estimation. A measure of housing price is regressed against all housing attributes using the best-fitting functional form (see, for example, Arimah, 1992a; Follain and Jimenez, 1985; Murty et al, 2011). In the second stage, the demand function for housing attribute is estimated by using the partial derivative with respect to a housing attribute as the dependant variable and quantity of housing attributes, some measure of the consumer’s income, taste etc.…”

“…In the second stage, the demand function for housing attribute is estimated by using the partial derivative with respect to a housing attribute as the dependant variable and quantity of housing attributes, some measure of the consumer’s income, taste etc. as independent variables (Arimah, 1992a, 1992b; Blomquist and Worley, 1981, 1982; Crane et al, 1997; Freeman, 1979; Linneman, 1981, 1982; Megbolugbe, 1986; Murty et al, 2011).…”

Impact Of Air Pollution On Property Values: A Hedonic Price Study

“…The hedonic price function relates price of residential property to the structural, neighborhood and environmental characteristics of the property (Murty, 2003) where, ln PPRICE is natural log of property price, ln LANDSIZE is natural log of plot area, ln BUILDSIZE is natural log of building area, ln DISSCHOOL is natural log of distance from school, ln DISHOSPITAL is natural log of distance from hospital, ln CO is natural log of CO…”

“…and local amenities like environmental quality, access to services, communication, etc. (Parikh, et.al.,1994;Murty andSurendar Kumar, 2002 in P.K.Baby, 2003). Although all these factors influence the choices of consumers, the primary concern of this inquiry is to unearth how the quality of air influences property values.…”