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Disamenity impact of Nala Lai (open sewer) on house rent in Rawalpindi city

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  • Irfan Muhammad

    (COMSATS Institute of Information Technology (CIIT))

Abstract

Over time, many natural drains for storm water have turned into open sewers due to the absence of proper sewage systems in Rawalpindi city of Pakistan. The “Nala Lai” is now a fully open sewer that Rawalpindi relies on to get its waste out. In this study, we use the Hedonic property value method to estimate that how disamenity of open sewer system, affect housing prices. We provide estimates of the benefits of converting the open system into a closed sewer system. We find that house rents decrease by approximately 10 % if there is an open sewer (nali) by the house. House rents also increase for homes located further away from the main open drain (Nala Lai)—e.g. a house located 400 m away from the main open drain enjoys a 12 % increase in rent because of its distance. Sewer smell has a depressing effect on rent in those areas where smell remains constant throughout the day. The results suggest that residents are willing to pay to be away from bad odor emanating from the open sewerage system. City planners need to take this into account and consider installing sewerage pipes in open sewer areas, which would change the nature of Nala Lai from a disamenity to an amenity.

Suggested Citation

  • Irfan Muhammad, 2017. "Disamenity impact of Nala Lai (open sewer) on house rent in Rawalpindi city," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 77-97, January.
    • Handle: RePEc:spr:envpol:v:19:y:2017:i:1:d:10.1007_s10018-015-0136-z
    DOI: 10.1007/s10018-015-0136-z
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    Cited by:

    1. William F. Vásquez & Laura Beaudin, 2020. "On the use of hypothetical price data to estimate hedonic models in a developing country context," Letters in Spatial and Resource Sciences, Springer, vol. 13(3), pages 219-231, December.
    2. Ngawang Dendup & Kuenzang Tshering, 2018. "Demand for piped drinking water and a formal sewer system in Bhutan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 681-703, July.
    3. Leiva, Benjamin & Van Houtven, George & Vásquez, William F. & Nájera, Andrea, 2023. "Valuing water service reliability and in-home water storage: A hedonic price model from Guatemala," Utilities Policy, Elsevier, vol. 82(C).
    4. Nur Amira Aina Zulkifli & Shazmin Shareena A. Azis, 2021. "The Effects of Tangible and Intangible Green Elements on Green Residential Value from Professional Perspectives," LARES lares-2021-4dqh, Latin American Real Estate Society (LARES).
    5. Touseef Hussain & Jaffar Abbas & Zou Wei & Mohammad Nurunnabi, 2019. "The Effect of Sustainable Urban Planning and Slum Disamenity on The Value of Neighboring Residential Property: Application of The Hedonic Pricing Model in Rent Price Appraisal," Sustainability, MDPI, vol. 11(4), pages 1-20, February.

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