The Contribution of Environmental Amenities to Low-income Housing: A Comparative Study of Bangkok and Jakarta

Abstract

Central and local governments and their creditors are increasingly interested in cost recovery for public services. These strategies have two aims: increasing revenues and making a better connection between benefits received and consumer bills. This paper estimates a hedonic model for household-level data in a rare contrast of slums in two Asian mega-cities to provide comparative information about how the poor value environmental amenities and basic infrastructure access. The results suggest that slum housing prices do reflect differentials in public service access and that rough estimates of the value of access can be cheaply and usefully obtained for planning purposes.

Measuring the welfare effects of slum improvement programs: The case of Mumbai

“…Currently the Valmiki Ambedkar Awas Tojana Program (VAMBAY) provides loans to the poor to build or upgrade houses. 1 The economics literature on the benefits of slum improvements has, for the most part, consisted of hedonic studies that estimate the market value of various improvements, including tenure security and infrastructure services (Crane et al, 1997;Jimenez, 1984). Kaufmann and Quigley (1987) advanced this literature by estimating the parameters of household utility functions rather than limiting the analysis to the hedonic price function.…”

Assessing the Impact of Urban Improvement on Housing Values: A Hedonic Pricing and Multi-Attribute Analysis Model for the Historic Centre of Venice

“…HPM has been applied to very different urban contexts: in cities such as Geneva [7][8][9] or Glasgow [10]; metropolises such as Naples [11,12], Tokyo [13], Chicago, Denver, Philadelphia, Baltimore, Washington DC [14,15], or Seoul [16]; and in informal settlements in Asian cities such as Bangkok and Jakarta [17]. Studies have either focused on one specific local context [18,19], or compared various local environments ranging over wide territorial areas to estimate the effect of the proximity to natural attractions [20][21][22], or big infrastructures such as airports [23].…”

“…Many studies have also used linear [13,14,20,36] and logarithmic functions [13][14][15]17]. Sample size is also another important characteristic distinguishing existing studies, which varies from a minimum of 190 [13,28] to a maximum of 55,799 [15] observations.…”

“…Sample size is also another important characteristic distinguishing existing studies, which varies from a minimum of 190 [13,28] to a maximum of 55,799 [15] observations. Most studies have used around 500 observations [16,17,23].…”

The Welfare Effects Of Slum Improvement Programs : The Case Of Mumbai

“…Historically, both types of programs have been implemented in Mumbai (Mukhija 2001;Mukhija 2002 The economics literature on the benefits of slum improvements has, for the most part, consisted of hedonic studies that estimate the market value of various improvements, including tenure security and infrastructure services (Crane et al 1997;Jimenez 1983Jimenez , 1984. Kaufman and Quigley (1987) advanced this literature by estimating the parameters of household utility functions rather than limiting the analysis to the hedonic price function.…”