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The disposal of municipal solid waste in dumping sites located near residential areas is a serious problem in developing countries like India. Urban landfills are essential for managing municipal solid waste, but often generate significant negative externalities, including odor, pollution, which adversely affect nearby residential areas. There is a lot of debate over whether, and the extent to which, landfills affect the value of residential properties. The previous studies had shown mixed conclusions.
This study investigates the influence of proximity to the Ghazipur landfill site and local environmental quality on residential property prices in Delhi, employing a hedonic pricing model with a Box-Cox transformation of the dependent variable.
The empirical analysis employs a comprehensive hedonic pricing model that examines the impact of various structural, neighbourhood, and environmental attributes, including the distance to the landfill site, on property prices. Property transaction data and spatial information on Landfill Site proximity are utilized to estimate the implicit value associated with living near the landfill site.
The Box-Cox transformation model reveals that the environmental factors, particularly the air quality, have a significant influence on the residential property prices near the Ghazipur landfill site. While proximity to the landfills shows a negative correlation with property prices, the effect is statistically insignificant.
In contrast, deteriorating air quality is associated with lower residential property prices, showing marginal significance. Water quality, however, does not have any meaningful impact. These findings suggest that households are more sensitive to environmental quality factors like air pollution than to physical proximity to the landfill. The study highlights the importance of urban environmental quality, especially clean air, in determining housing market outcomes. Policy efforts aimed at reducing air pollution could enhance both property values and urban livability.
Key Words: Landfill site, Hedonic pricing, Property value, Environmental quality, Proximity.
