IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v87y2019ics0264837719304247.html
   My bibliography  Save this article

Does environmental noise affect housing rental prices in developing countries? Evidence from Ecuador

Author

Listed:
  • Zambrano-Monserrate, Manuel A.
  • Ruano, María Alejandra

Abstract

Environmental noise is defined as an unwanted sound which could be generated by anthropogenic activities (for instance industrial or commercial activities), the transit of engine vehicles and melodies at high volume. When these noises are played at the same time and during extended periods, they might cause health issues. As such, excessive environmental noise causes what is known as acoustic pollution. The effects of environmental noise on the housing rental price have been widely studied in developed countries; however, there are no similar studies in developing countries. The main reason for this is the lack of public information about environmental noise levels since the governments of turn have shown little interest in this type of data. On the other hand, measuring the level of noise is a complex and expensive procedure, which has prevented the researchers of the area from studying its effects. For this reason, following the technical recommendations of the Unified Text of the Secondary Legislation of the Ministry of Environment (TULSMA, for its acronym in Spanish), we gathered primary information about the level of environmental noise in Machala, one of the most important cities in Ecuador, which has experienced a great surge of economic growth in the last years. Our results show that per each unitary increment of the level of noise (dB) of the sector where the residence is located, its price diminishes on average in 1.97%. This result is useful for policymakers since the estimated economic value can be used as a reference to undertaking public projects destined to fight this problem. We also evidenced, that sectors with a higher level of noise are at downtown, reaching levels higher than 78 decibels (dB). This result is explained since at downtown the greatest commercial activity of the city is concentrated, as well as a great vehicular flow, where the drivers use excessively the car horn. Furthermore, the situation is aggravated due to the establishment of informal businesses in certain streets, which causes an increment in the noise level. We contribute to the literature evidencing that environmental noise is also a problem for developing countries; in addition, given the lack of information on noise levels in this type of countries, our research provides a clear and precise guide so that future research can raise noise data in other locations of interest.

Suggested Citation

  • Zambrano-Monserrate, Manuel A. & Ruano, María Alejandra, 2019. "Does environmental noise affect housing rental prices in developing countries? Evidence from Ecuador," Land Use Policy, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:lauspo:v:87:y:2019:i:c:s0264837719304247
    DOI: 10.1016/j.landusepol.2019.104059
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719304247
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2019.104059?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mei, Yingdan & Hite, Diane & Sohngen, Brent, 2017. "Demand for urban tree cover: A two-stage hedonic price analysis in California," Forest Policy and Economics, Elsevier, vol. 83(C), pages 29-35.
    2. Choumert, Johanna & Stage, Jesper & Uwera, Claudine, 2014. "Access to water as determinant of rental values: A housing hedonic analysis in Rwanda," Journal of Housing Economics, Elsevier, vol. 26(C), pages 48-54.
    3. Trojanek, Radoslaw & Huderek-Glapska, Sonia, 2018. "Measuring the noise cost of aviation – The association between the Limited Use Area around Warsaw Chopin Airport and property values," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 103-114.
    4. Johanna CHOUMERT & Jesper STAGE & Claudine UWERA, 2014. "Access to water as a determinant of rental values: A hedonic analysis in Rwanda," Working Papers 201401, CERDI.
    5. Kolstad, Charles, 2011. "Intermediate Environmental Economics: International Edition," OUP Catalogue, Oxford University Press, edition 2, number 9780199732654.
    6. von Graevenitz, Kathrine, 2018. "The amenity cost of road noise," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 1-22.
    7. Nir Becker & Doron Lavee, 2003. "The Benefits and Costs of Noise Reduction," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 46(1), pages 97-111.
    8. Liebelt, Veronika & Bartke, Stephan & Schwarz, Nina, 2018. "Revealing Preferences for Urban Green Spaces: A Scale-sensitive Hedonic Pricing Analysis for the City of Leipzig," Ecological Economics, Elsevier, vol. 146(C), pages 536-548.
    9. Lavee, Doron & Bahar, Sefi, 2017. "Estimation of external effects from the quarrying sector using the hedonic pricing method," Land Use Policy, Elsevier, vol. 69(C), pages 541-549.
    10. James P. Lesage, 2008. "An Introduction to Spatial Econometrics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 19-44.
    11. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    12. Laurent Denant-Boèmont & Javier Faulin & Sabrina Hammiche & Adrian Serrano-Hernandez, 2018. "Managing transportation externalities in the Pyrenees region: Measuring the willingness-to-pay for road freight noise reduction using an experimental auction mechanism," Post-Print halshs-01866869, HAL.
    13. Manuel A. Zambrano-Monserrate, 2016. "Formación de los precios de alquiler de viviendas en Machala (Ecuador): análisis mediante el método de precios hedónicos," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 39(109), pages 12-22, Enero.
    14. Laurent Denant-Boemont & Javier Faulin & Sabrina Hammiche & Adrian Serrano-Hernandez, 2018. "Managing transportation externalities in the Pyrenees region: Measuring the willingness-to-pay for road freight noise reduction using an experimental auction mechanism," Post-Print halshs-02319692, HAL.
    15. Walsh, Patrick & Mui, Preston, 2017. "Contaminated sites and information in hedonic models: An analysis of a NJ property disclosure law," Resource and Energy Economics, Elsevier, vol. 50(C), pages 1-14.
    16. David M. Drukker & Ingmar Prucha & Rafal Raciborski, 2013. "Maximum likelihood and generalized spatial two-stage least-squares estimators for a spatial-autoregressive model with spatial-autoregressive disturbances," Stata Journal, StataCorp LP, vol. 13(2), pages 221-241, June.
    17. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kashif Raza Abbasi & Khadim Hussain & Rani Saima Noureen & Uzma Bashir, 2021. "Linking Protective Strategies Effects to Manage the COVID-19 Risk on Global Environment: Fresh Evidence from the Best Responsive Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 389-401.
    2. Siti Rosilah Arsad & Muhamad Haziq Hasnul Hadi & Nayli Aliah Mohd Afandi & Pin Jern Ker & Shirley Gee Hoon Tang & Madihah Mohd Afzal & Santhi Ramanathan & Chai Phing Chen & Prajindra Sankar Krishnan &, 2023. "The Impact of COVID-19 on the Energy Sector and the Role of AI: An Analytical Review on Pre- to Post-Pandemic Perspectives," Energies, MDPI, vol. 16(18), pages 1-31, September.
    3. Zambrano-Monserrate, Manuel A. & Ruano, María Alejandra & Yoong-Parraga, Cristina & Silva, Carlos A., 2021. "Urban green spaces and housing prices in developing countries: A Two-stage quantile spatial regression analysis," Forest Policy and Economics, Elsevier, vol. 125(C).
    4. Mirosław Bełej & Radosław Cellmer & Michał Głuszak, 2020. "The Impact of Airport Proximity on Single-Family House Prices—Evidence from Poland," Sustainability, MDPI, vol. 12(19), pages 1-26, September.
    5. Doan, Quang Cuong, 2023. "Determining the optimal land valuation model: A case study of Hanoi, Vietnam," Land Use Policy, Elsevier, vol. 127(C).
    6. Mei, Yingdan & Qiu, Jixiang & Wu, Jialu & Meng, Lina, 2021. "Do residents care about urban dumps? Evidence from individual housing transaction data," Land Use Policy, Elsevier, vol. 109(C).
    7. Cankun Wei & Meichen Fu & Li Wang & Hanbing Yang & Feng Tang & Yuqing Xiong, 2022. "The Research Development of Hedonic Price Model-Based Real Estate Appraisal in the Era of Big Data," Land, MDPI, vol. 11(3), pages 1-30, February.
    8. Manuel A. Zambrano-Monserrate & Maria Alejandra Ruano & Carlos A. Silva & Ronald Campoverde & Christian Rosero & Daniel A. Sanchez-Loor, 2023. "Dynamism of the housing rental market in Guayaquil, Ecuador: an empirical analysis," Empirical Economics, Springer, vol. 64(2), pages 747-764, February.
    9. Mateusz Tomal & Marco Helbich, 2022. "The private rental housing market before and during the COVID-19 pandemic: A submarket analysis in Cracow, Poland," Environment and Planning B, , vol. 49(6), pages 1646-1662, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel A. Zambrano-Monserrate & Maria Alejandra Ruano & Carlos A. Silva & Ronald Campoverde & Christian Rosero & Daniel A. Sanchez-Loor, 2023. "Dynamism of the housing rental market in Guayaquil, Ecuador: an empirical analysis," Empirical Economics, Springer, vol. 64(2), pages 747-764, February.
    2. Zambrano-Monserrate, Manuel A. & Ruano, María Alejandra & Yoong-Parraga, Cristina & Silva, Carlos A., 2021. "Urban green spaces and housing prices in developing countries: A Two-stage quantile spatial regression analysis," Forest Policy and Economics, Elsevier, vol. 125(C).
    3. Julie Bulteau & Thierry Feuillet & Rémy Le Boennec, 2018. "Spatial Heterogeneity of Sustainable Transportation Offer Values: A Comparative Analysis of Nantes Urban and Periurban/Rural Areas (France)," Post-Print hal-04362203, HAL.
    4. Amarin Siripanich & Taha Hossein Rashidi & Emily Moylan, 2019. "Interaction of Public Transport Accessibility and Residential Property Values Using Smart Card Data," Sustainability, MDPI, vol. 11(9), pages 1-24, May.
    5. Estebania Teyeliz Martínez-Jiménez & Julie Le Gallo & Enrique Pérez-Campuzano & Alonso Aguilar Ibarra, 2022. "The effects of land price in the peri-urban fringe of Mexico City: Environmental amenities for informal land parcel purchasers," Urban Studies, Urban Studies Journal Limited, vol. 59(1), pages 222-241, January.
    6. Anthony Amoah & Peter G. Moffatt, 2017. "Estimating demand for reliable piped-water services in urban Ghana: An application of competing valuation approaches," University of East Anglia School of Economics Working Paper Series 2017-01, School of Economics, University of East Anglia, Norwich, UK..
    7. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    8. Marta Sylla & Tadeusz Lasota & Szymon Szewrański, 2019. "Valuing Environmental Amenities in Peri-Urban Areas: Evidence from Poland," Sustainability, MDPI, vol. 11(3), pages 1-15, January.
    9. Anthony Amoah & Peter G. Moffatt, 2021. "Willingness to pay for reliable piped water services: evidence from urban Ghana," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 805-829, October.
    10. Raul-Tomas Mora-Garcia & Maria-Francisca Cespedes-Lopez & V. Raul Perez-Sanchez & Pablo Marti & Juan-Carlos Perez-Sanchez, 2019. "Determinants of the Price of Housing in the Province of Alicante (Spain): Analysis Using Quantile Regression," Sustainability, MDPI, vol. 11(2), pages 1-33, January.
    11. Eric Nazindigouba KERE & Johanna CHOUMERT & Amandine Loyal LARÉ-DONDARINI, 2014. "The impact of water and sanitation access on housing values: The case of Dapaong, Togo," Working Papers 201403, CERDI.
    12. Jorge Luis Casanova Ferrando, 2019. "The Airbnb Effect on theRental Market: the Case of Madrid," Studies on the Spanish Economy eee2019-34, FEDEA.
    13. Yao Zhang & Taoyuan Wei & Wentao Tian & Kai Zhao, 2022. "Spatiotemporal Differentiation and Driving Mechanism of Coupling Coordination between New-Type Urbanization and Ecological Environment in China," Sustainability, MDPI, vol. 14(18), pages 1-19, September.
    14. Prodosh Simlai, 2018. "Spatial Dependence, Idiosyncratic Risk, and the Valuation of Disaggregated Housing Data," The Journal of Real Estate Finance and Economics, Springer, vol. 57(2), pages 192-230, August.
    15. GLUMAC Brano & HERRERA-GOMEZ Marcos & LICHERON Julien, 2018. "A residential land price index for Luxembourg: Dealing with the spatial dimension," LISER Working Paper Series 2018-07, Luxembourg Institute of Socio-Economic Research (LISER).
    16. Arturo Bujanda & Thomas M. Fullerton, 2017. "Impacts of transportation infrastructure on single-family property values," Applied Economics, Taylor & Francis Journals, vol. 49(51), pages 5183-5199, November.
    17. Junjie Cao & Yao Zhang & Taoyuan Wei & Hui Sun, 2021. "Temporal–Spatial Evolution and Influencing Factors of Coordinated Development of the Population, Resources, Economy and Environment (PREE) System: Evidence from 31 Provinces in China," IJERPH, MDPI, vol. 18(24), pages 1-22, December.
    18. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease vs. noise: Long-run changes in the value of transport (dis)amenities," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    19. Athanasios Votsis & Adriaan Perrels, 2016. "Housing Prices and the Public Disclosure of Flood Risk: A Difference-in-Differences Analysis in Finland," The Journal of Real Estate Finance and Economics, Springer, vol. 53(4), pages 450-471, November.
    20. Sunak, Yasin & Madlener, Reinhard, 2016. "The impact of wind farm visibility on property values: A spatial difference-in-differences analysis," Energy Economics, Elsevier, vol. 55(C), pages 79-91.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:87:y:2019:i:c:s0264837719304247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.