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Effects of Waste-to-Energy Plants on China’s Urbanization: Evidence from a Hedonic Price Analysis in Shenzhen

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  • Chuanwang Sun

    (China Center for Energy Economics Research, School of Economics, Xiamen University, Xiamen 361005, China
    Department of International Economics and Business, School of Economics, Xiamen University, Xiamen 361005, China)

  • Xiaochun Meng

    (China Center for Energy Economics Research, School of Economics, Xiamen University, Xiamen 361005, China)

  • Shuijun Peng

    (Department of International Economics and Business, School of Economics, Xiamen University, Xiamen 361005, China)

Abstract

Along with the accelerated process of China’s urbanization, the increasing urban population has put much pressure on solid waste disposal. A speeding-up development plan of waste incineration power generation has been launched in China, which aims to resolve the dilemma where many cities are besieged by waste. However, due to the potential impact on surrounding environment, the site selection of these facilities has encountered protests from local residents. The economic reflection of the non-market public sentiment precisely embodies the prices of surrounding real estate market. Taking Shenzhen city as an example, this paper applies a hedonic price model to evaluate its impact on local housing values. The results show that for every additional kilometer the property is away from WTE (waste-to-energy) plants, the value of real estate can increase by 1.30%. If the distance is restricted to within 5 km, the effect rises to 8.6%, which remarkably increases negative externality. In addition, the depreciation impacts on property in two regions of Shenzhen city are significantly different. Policies for reducing the negative effects of the WTE plants are recommended.

Suggested Citation

  • Chuanwang Sun & Xiaochun Meng & Shuijun Peng, 2017. "Effects of Waste-to-Energy Plants on China’s Urbanization: Evidence from a Hedonic Price Analysis in Shenzhen," Sustainability, MDPI, vol. 9(3), pages 1-18, March.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:475-:d:93783
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    1. Mukherjee, C. & Denney, J. & Mbonimpa, E.G. & Slagley, J. & Bhowmik, R., 2020. "A review on municipal solid waste-to-energy trends in the USA," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    2. Qingduo Mao & Manli Zhang & Ben Ma, 2018. "Benefit and Risk Perceptions of Controversial Facilities: A Comparison between Local Officials and the Public in China," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    3. Zuo Zhang & Xinhai Lu & Min Zhou & Yan Song & Xiang Luo & Bing Kuang, 2019. "Complex Spatial Morphology of Urban Housing Price Based on Digital Elevation Model: A Case Study of Wuhan City, China," Sustainability, MDPI, vol. 11(2), pages 1-17, January.

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