Evrlusting thc Imprct of Dirrmcnity of Opetr SewerrSe
SyEtem otr llouse Rent
A rhetit tor tbe
prrtid
fumln€
h Rrwdphdi City'
of th. d'gre€
re{uinn'lt
ofthe dogl. of
Ih.tor ol Pbilo.opby
By
Mob.mmod
lrtrn
FWAST SCH(X)L OF DCONOMIC SCIENCI,S
IlDf,RA!
URDU IINWERSITY OF ARTS, SCIf,NCf,S
ISLAMABAI)
& TECHNOIOGY'
rad€srl ltrdr tttrivrraitt' of lrtt gcieoc' 'nd
Tad|nology
gcJ|ool,
l.I8.bad
ot Ecoanic gci.Dca!
Pb.D
fb.ai.
Aorddl'c Yaat 2010
Evelurting tb€ l4).ct of Dis.!.aitt' of oF.!
36rara9G gyatd on Eousa Ralt ia
R.!taIPiDdi
Suparvilo!:
D!. R.h&a siddLqui
city.
CERTIEICf,TI
Thl! Ir to c.rtlfy th.t l|!. ttuti|[.d I!!!n hu copleted h15
dis6elt.tton ln p.!tI.I tullilln.n! o! th. !.qsi!€m.nt3 fo! the
deqlee of Doctor o! Phllolophy.tttltl.d, "Ev.Iu.ting th€ I4act
oI D!5.!.rlty oI (b.n 8d.!rg. ot lou.lng Prlce. in Ra$]plndi
ci.ty" urd.t !y .!0.!{t!1on, Iu ry oPltion. tbl3 .tllertatid
tulty -€t! th. !.qoltsnt!, tn .coP. rd qu.lltv, tor th'
degF€
ol
Doctol
ol Philo.athy'
Gblsr
ot. R6lEn slddlqui
My't€tehete
lclrnorl€dgoart.
Rehara Siddiqui fat het hefp.
etcaDnq$ett ahd ex.ellena supelvjsio, ahd quidaDce tbat she
prctided, specialTy for tbe ttuittll dir"ssio's r bad titb het
drrilg fiet.t survey and at reqllat itteivalB l wauld like ta
I atu aasX qratef\) ta Df
specia y tbaak D!. sved Shoiab R.za of Pa\istat Lititute of
Applied Ergineetitq atd sctence., far his experaeh'e ln att
dispeteion nodelinq. I an rhankful to the Ditectot cehetal' Dt'
syed Naflab Eaide! llaqvi fo! his sataf soppott dtrinq coutse ot
expless frv glatttude to Karl Golan Maler and Subhtendu
lhe fteld
Pattanayak fo! thei! advice an<l €ncoutage@nt durinq
suivey. I {ould like to exPless nv thank to Pliva Shvamundar
for het constluctive clitlclsm dulirq the Resealch and Tlainlnq
colkshops. I thank Praoab Mulderiee fo! 3halinq his eape'tise
,ith fte du!1n9 the dev€lopnent of the surv€v questionnalle'
task'
Tithout his a3llstance, it eould have been a difficult
I uish to
Developnent of
espress ny glatitude to south Asiao t{'tto!t fo!
the leseatch and
Environmental Econonica (SANDEE) for sponsolinq
the SANDEO secretariat' palticulally Kavlta
I
to m€nbels of
period of
shrestha, for her logisticar suPPort throughout the
librarv
the research. I ar also thankful to Anuladha Kafle fo!
support io the fom of resetrch Pape's'
to Dt. An{ar Bziq and rr'l. Rizvah of NUsI
t itg DePa t t8ent ) f r thet quicleness abott
Eng i
^ee
theolY. Thatks to t4r ' Nade4 af Pakistat
ne xhe necessafv
a
I eish to lecold ty aPPleciation of u!. Tanv..r ald hie te.h fo!
conducting the fletd eurvey aod M!.luqnan fo! his asslstance
duling the resear.h. Thanks ale .lso due to M!. zafi! fo! the
3upport vlth GPs anarFls.
fo! sharinq tith ne h:is knowledge of
engineering conputation! especlallv in and fo. gul<tlnE !e
toxalds a bette! undelstanding of the issue. Thanks a!' also
<lue to his colleagues vho h€lP.d ne a lot. tna'ts ta r\htttak'
A.htaq, sajld, Attiqre, shabbir, 2.h6en, Javalcl' latiq tnd vsnan
fot aakibg lite easie! ,t the orlvefeitt. A genelar expresslon
of thanb t3 a13o due to alt tho!. ,ho helPed oe thloughout ov
I thank
my brothe! A<lnan
I eould be r.h1ss i.f I <lt.l not thank nv s1f€ rho sacrtfic'd
valuable ttre on nY beh.lf and fo! beinq patient' callnq
supPortive throuqhout
her
an'l
lbattect
l.donic property value helhod in ode! to
€stimte how the locatton of th€ disarenlty, i! !i3 tnltance,
the bad odou! frd thc open ser€raqe sylt€h. affectE housing
pries in the city of Rasalpindi aDd to plovide ertimres of
th€ b€n€fits of cobvelilng the systfl lnto a closed r€r€lag.
The thesis ussd the
system. The erlstln9 Ee{eraqe system conplise of 309 closed
.n<l 70* opln serelage sy3tee. Househotds u3e the lain dlain
and Nala lai for serelaq€ pulpose because of Do stgntficant
d€veloph€nt ln publlc i.frastructure. The 3ulvey is conducted
ln both open and closed sEtrerage 3ystem trith dLffe4nt
IocatioN. The esti@tes thlough odour dlmy foud that rhe
house !€nt de.lease by R3. 572 per month if the oper s€rer6ge
,N.Ii' is ln front of rhe hou6e. rf the op.n sew€lage sysrem
1s sehi cloled the sillingnes! to pay for rhe houre reht
R3. 333 p.! ronth. Tbe estidres rhlough di3ra.ce
lunction found that rhe h6ur€ r€nt in.!e!es by R..239 pe!
in open se{erage alea and Rs 139 per hundled
sevelage a!e!, The inteDllty of rlle !€r€lage
3&I1 fallg to th€ threshold l€vet at a dlstanc. of ?OO
seierago snell at.o has a deplessing 6ffect on
t.nt in thore areas rh€re lhe smelr r@]ns constant
throughout rhe day. the envilomEDrat enqtneeri^g conc€pt of
odour d1sp6!5ioD (cau.sian ai! dl3perston) by using R TcfiET 2
softrale t5 used to quanrify rhe odour intensity at the
le.eptor level (house) i! pe! cubic nillirurle. The inpact of
severaq€ o.lo!. is Eor€ 3iq.ifi..nt for DeDtral enwirotrenral
conditions r:ther rhrn stable and ulsrable .tiMre. Th€
eEtiMted and pledlct€d smell lntensity of op€n Eereiaqe
3ysten 3.€II i3 hlghry corielared in srlble, unstabre and
n.ucral ai! condftioN.
?,r strb rB, cdditl.d
t.9 lts soco bultlo! r&d.I.... . .'
e..ttbaDb!'.''.
t.lo
ts€lri4l
D1.P.!.1
" --7,10.1Valiable Descraptron- _ ____
structule chalacteristtca ot tlouse -- _..
Distance andNeighborhoodcharacteristica "" ""_-*_-'"]:
'
Envtrorental variable ... , ...
-- 74
74
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3.1.1 P!€sence
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rla!$ l.a r.r. r.f t.lri, ao! Dl'.tsl'4 cddtjdt
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cb.pt !
1
Ra{alpindi city is the thi.d larqest ciEy of Pakistan aod
curlently tras mole than 2 (itlion populattons with about 2.49t
annuar glosth later. The inhabitants of R.salpi.di City ,e!s
the 'Ravals'but lt ra3 sikl:d who esiablished thls area ln 1765
a.d tnvited nearby tr.d€ls to liv€ in Raralpindi. The ciiy
situated ar the end oa farca salr Range and is the gateyay ro
the silk Rolte dnd sourh Asian star€s. The population of
Raralpindi city g!e{ at a nuch fastei rate rhe. govelment
esrabrished .nd shlfre<t ninlsfties and offices from /€rachi ro
Isldabad a n€r capiral in 1965. Thc Eiqration of tabo! flon
put a pEe3sure on infrasrructure and publ1c
fa.ititles and ir was obs€.ved rhat the sanitation (drinking
sat€!) and ser€rage facilitie3 beco@ contehprible fo. rie
Iiving population,
clry
has historlcal ,Nata rrai, lfliburary Rive!
/ stre4), ,hich ha3 a catchnent area of ?3.5 rn, a.d a lenqth
of 1s rn passes flm rhe entile city and droxn
The Raualpindi
in South-Ealteln side of the ctay. the Nala lai is connected
by revelar side drainr rhich caty the lain ,are! of rhe city.
The city re.eives rain in al] s€asons bur hav€ heavy lain rall
in @nsoon e.asoD (July-septerber) . The toral lainfall during
the rainy se.3on 1s abour 600 m ro lOOOmr accountlng to 60 g
of the .nnual rainfall of th€ country.
By the pa33.9e of tine rhe natural .ain dr.in. have been
ro open eeyelage systebs. The existing seueraqe
sysEen cove!3 onty about 30* of the city alea and has no
ifuh|ldihc6in'..tgEldt9s
sererage t!.athent plant':. Th€ seferage syst€ns 1n the
rmining l0l .rea of the city ale oPe! fith valying ri<lth and
of Nala lai varie3 at diff.rent praces
'idth and depth
aclos3 the city. The natural drrin convelted in !o sewer.ge
systen has 5.ve!al shapes and ale ..l]ed 'lth difrelent nue
in Iocal lanquage accordlnq to thetr size/ shaper tldth and
d€ptb. a sMIt diain of sererlge in front of the hous€ is
called "n!I!" sith a sidth warying tlm 10 ilches to 30 inches
ard depth of sia iDches to 24 inches (tso feetl The
A sererag€ draln vitb a {idth ranlltg flotr 4 to 10 feet tjtb a
depth varyi.q flon three feet to five feet (Aprox) 1n nolMl
flor and sit to nine reet depth 1n rainv season, t3 'alled
tllarar; gencrally is situated at lbe back 31de
Different- tllbutalies, €!.ytng household sere!.ge ot the
€ntile city, {h€n fa11 in NaIa lli at shallos plac' lt Iooks
like a b1g clnal o! a se1l !tve!. The turinm ridth of Nala
l,at is nore !ha. 350 fe€t and haxins depth valles fld 10 to
20 in norml flo{ and up to. hundr.d feet in floods'
availabitity of prope! s.*eraqe netrork, setage dIspGaI
and tGatmnt facility ha3 forsened the litlng conditiols'
especialty for Po6r people ltving adjacent io xala Lai It {as
repo*ed that ihe 3anitation (flate! supplv) IineE cro33 the
se{erage lines and due to wea! atd tea! of sanitation lines
seepage in to lanitation tlne contanlnate tbe d!inklng vater
being supplled to the edtir€ population The nixtng of open
serelage and sanitatio! 1lne i5 a colstant threat to h€a]th
and a Prire soulce lor rate! born€ and skin di3'ases'
Non
It is difficult to evaluate tho envirom€ntal goodr b6cause
they hdwe no plope! M.tet. Tber€tole thev.!e t.aded in
€xplicit real estate rurket. Th€ propelty vrtue linted {ith
enviromentel quality ha. beer det6lnined bv the {llllDg.ess
oethod to treasure
to pay of the household. The
,illirgne.. to pay i. the hedonic nodel, ,hich bas been used
in this study a1so.
1.1 obj.clt6
Nomlly the hedonic gtudies use the di3d.tltv at one Point
Iocation .uch as superfund site' to*1c taste srter e€v€laqe
t!eat@!t pla.t etc ,h.teas the disarenity ln the alear under
study i3 coltinlous it Mture tlt€ a can.I rith a length of
mle than 15 kilon€!.r. The bad .n€Il gen€llt€d flon Nal' lai
ls also a type of dllanenitv af!€cting ev'n
a colsidetlble distatce flm Nala ',ai Th€lefo!''| the
objective! o! this theeis a!e,
. To det€$ine th6 inpact of open se{e!'ge svsten on nouse
r€nt in Rawarpindi cltv
. To det€!!lne tb€ rlllingn€se ot housoholds to pav for the
closed serage svs!.s of Ra{alPildi
'ity
. To eEtinate th€ ,eIf.re gain (capital value) of
houee!
flon op.n seeer.Ee lvsten to .Iosed 6et€raqe svsten'
. To plovtde a flarerort to loc:r au Dritier
fo!
genelating .eveDue.
Tllere is no elpirical hedonic atudv avail'ble i! th€ torrd
shich e3tidles tbe tnPact of continuoDs tvp' of di3e'itv on
of
house prlc.s. To highlight the iFpact ol differ€nt aspect
Naia r,ai on house !ent, the diean€titv of se{erage svrten or
Nala
lai is
categora2ed a5:
a. Physj,cal elistence of 3€rerage as bad
b. SreIf rrom lhe 3e"e!age ewen .o vi€r'
vie'
The thesis is divided in eight chaptele after th€
introduction. secoDd chapter di3c83es the r.ntal houslnq
mrke!. fiedoric piopelty nodel i! discussed in chapter thr.e.
Folth chapter de!cribes the EuEvcy methodoloqy and foi data
.o1I€.tio. procedure, chapter ftv€ analyzer the impact of
sererage sreIl, .at.torized by its i.tensity (altays and
oc.!sio.al) on house rent.
Ir the lixth chapter. the study urcs the distance a3 proxv fo.
measuring the iipa.t ot seweraEe sn€Il on house !ent. Fo! the
pu.poee, distance gladieDt fun.tion ras dev.IoFed to estin.te
the inpact ol NaIa l.i tn neters
ID chaPter (seven) the €aussian Di3persion eff€ct of se'€rage
sfre1I on house rent by e.ttn.tlng the concentlatior at each
household eMratlng from the Nala lai. Th€ Gasulenent o!
odou! i! cobll,ex tn nature and Ie v€lv difficult to find th.
cbeDical ploperty ot sGlI but Gauesia! dispelsion mdel rith
valid asssption can give the €rtlete of odou! concent'aEion
ar th€ lecepto! polnt in p€! .ubic nillinete! The l'st
chapt.! (eight) discusse€ the .orcluelon and pollcv
lecm€ndatton. The chapt€! also bighltghts diff€!'nt
di@nlion 6f NaIa lal and S€f..ag€ sdetl rhich the studv I"t
fo! future re.ealch.
€stlhation of hedo.ic price function using Nala l'ai in the
fon of distanc€ flnctio! and eltiGtion of lcrr rrd opeD
sererage sFtens througb disP.rsion nodel i3 'n additio! in
Th€
rhe hedonic sudi€!.
Cb.Pt !
2 Eoushg
2
Mrrk.t ia RlvllPindi City
2.1 lDttodEtton
of the r€lted ltou.e {ith lespect to the tntelio! of
the house vari€3 fld totn !o tov! and tocaritv td localitv
The house rith good !rte!!or
and frm cust@e!
and
such as h.rb1e or tilee floot, tlles in bathroom valls
cabinets in titch€n !.nted out at a hiqh Price .nd rne
.ustorer sho can affold then a13o i3 witling to pav more'
like
.ttnbutes
iNlltutions, lchools .nd coll€ges' hearth facllities llke
facirlties ltke
hospital,s and mternity hones; !ec!e'tional
pa.l€ and ptay groun&; eort pllce ald Grket
also found
conslderabl€ Inclea!€ on tlte house !en! The lb€gls
hlgher
that the deMnd fo! the bouse eitt! teo b€d ro@ ts
oed roons'
than !\e dsnd for Eh6 houses utEh rhre' Lo four
The deMnd
asceltain€d bv the proportv
SMlle! f&ilv size of tenant i e 4 td 5 !'mbe!s
pelsonsl rho have lert
Bachelols (riorLing class and eiploved
thei! fdities tn th6i! natlve to{ns'
lhe toun fo! educatron'
Students xho
Mjority of propertv dealers i3 new 1n the
involved gerer.rlv in facilitating the s'Ir
Th€
property besld€s helping those looking fdr
thei! p!lori!y to sell and pulchase business is
fa.t that they get hore fith tete! effotts lt is
to ponder over that nost of the propedv
con3ultants are neithe! plofessiooally traj,n€d no! P.oPerly
registeled and r.gulated, lence it is pedinent to rention
rhat at tine property @!k€t and allo the r.nt of tr)e hous€
d€p€nds on the lttllude, skllls and interest of the ProPelty
2.2 Colq.d &...
of the hous€s, generally nearured In squa!€
yards:r valies in different a!ea! of the .lty 1n oode$
tofNlllps, housing schere in posh and s4i porh area3, .overed
area is @re ae cdpared to the hou3e3 in domtom, ord
localities of the Rar.lpindi ctty. The ou6od.d
Raralpindi cfty ltte Raja Baza!, comettl cho{k, akal garh,
Rata a.d caral@ndt ar€ congest6dr thickly populated and hav€
open sefelag€ 5y5ts along {ith Nala !at. th.se localltles
h.v. etther in.d€qEte ot det€liolated and dilapid.ted
poltuted ervilouent. lrort of the ho8e3
infra3tlucture
"!h alea ranqing frd 90 to 210 square vd!d!
a!e rith a .ovE!.d
{here.s tbe contemporaly tovns of the city ale genelal]v uith
clos€d seweraqe systd. Thes. Iocalitie3 tnclud€ satellite
tovD .!d lthayaban e si! syed. th.y have b€en developed i. the
line of Urban PlanDing p.incipl.!. The coweted ar€! of hou.e.
in these localltlee {ith.Iosed s.serage sylt.f ie up to 1500
The coveled a!€a
2.3 Clorth ir DloP.ttY vrlu.
in th€ watre of plop€rty (both sale and porchase and rent
of the house) is because of lisE ]n ddand of the hous€ a!
capitaL good not as coNme! good, The lise 1n den.nd tas not
b€cau.e of rise in the pe. capita incone of th€ household but
due to the !i.€ itr deEnd of th€ property fo. lnvestrent
pulpose. The Plice hike in !e.f estate busines3 is
Rise
unprecedent€d nole tban
y€.!s
(2000-2005)
five
hundred percen! duling
Iart five
. Tbe reasons for lec€nt hike tn plopelty
!ale of ploperty
ale h€althy and hore than the ElLuP flon bank depdsit
and secDrities. Th€lefore, p€op1e inc.t nore in ploperty
when goveluen! lnnouc€d ner housiig sector. rn tne
city. The issuan.€ of Ii.€n5e to housing soci€tle6 botb
flon CDA (C6pital Deweloplent Aulhorlty) and RDA
{Ra'alpindi Developrent Aulhority) alro encoulaged the
ner invesiors fo! investn€nt in real €rtate
bank intelest rale on deposits is 1e33 than 3 i .nnuallv
rhich 15 consider€d neag.! by th. investors hence
elcoulaqed th€n to diwelt trleir invesftnt to lear
The
capital gaiD thlough
purchase and
The retlred pelsons rho do not have .xperienc€ of anv
sort of busine3s f€el secule and c@folt.ble t'v itvestlng
thei! penEion and glatutty 1n propertv busaners noPrnq
to! dlal benefit of investient and becone the ovne! of an
fo! the !ii. in PropettY valu€ ls th€
investh€nt by th. over.eas Pakistantr leturnlng frd
Europ. and Anerlca in the aftemth of 9/ll Thev
invested i! the prop€rty busine3s for th€ sde !€tsons as
AnotbeE reason
rele considered
bY the Pedtoners
' rom
location
The lange of Gnt and awelage lent incleases
The ave!.ge rent .ccolding to nunbeE of rods
rro b.d R.@. rn 1995, the rent of tfo bed
R!.1500 per month on average, lent of thlee bed loom house
ra3 Rs.3500 and for lour b€d rootu it Gs Rs.5O00 p€r nonth
The rise in the lent of house dulinE last 10 y€ars I.e flon
199s to 2005 i. rc.e than 100 p€!.€nt- It is obseded ihat
rent lncreases nonin.lly by 10t fron 1995 to 1999, and flon
1999 onrard the hike in tbe rent is noted as !01 annuallv
rhs B.d R.d. rn 1995, the lent of tblee
Rs.35O0 on :ve!age. o{ lhe rent of sinltar tvp€ of house
has goDe up
2.5 Ll|!t
to tu.9000 pe! nonth.
q?€r
Therc are tro types ot tenantst private pe!3ons
(Bu31ness
cmunity, emproyees o! Pltvat€ fll$ and factories) 3nd
gov€!@nt selvants. The differ€nce belueen tllen is that
plivate tenant Pays rent oui of hls inc@ {hereas gov€r@nc
tena.t Pays rent by lsing hirlDq faclitv provid€d bv the
leePe.tive goverment depalthent i.e gove'ment pav! the ren'
to the l.!dlo!d dlrectly. The gove'ment enPtovees "e gjten
the house lent allorance o! ce!ling facilitv in accordance
fith the set rules based on the designation or pav scale' ln
rcle
RaHai,plndi clty, the pelcent.ge of privat' tenants i3
than Gov€lNent tenants i e. lot ud 30t lespectivelv' Ther€
Ior Plopoltlob of Goc!@nt
ale diaferent
l,andlolds a!€ aflatd of tax departnent because the
rev€rue d€parLn€nt charges Propeftv incd€ tax equar to
luo rcnth rent of the hou36 (apploxiMt€rv) '
. The plocedule of aqreemeDt in 'ase of the qowerment
Enanrs is tenqthv and requir€s sewela] fo!@lities In
fact th€ agreenent is sign€d bet'een
dep.rtnett and the landlold but th€ house is occuPled
bv
ln such a situation the laDdldrd is left vith rittle
optio. and lib€fty it case he/lhe ralts to do ar:y *t
the agF.tunt or tant to qet his house vacate<l
the GowermDt
goverm€nt pays houEe
erployee and teaving rt
s.arch o! Iiv. in lny
R€centIY
hae revised ite hillng Poll.Y. Nor
allorance witb the 8:lary of th€
ar rhe di3cretion of ihe eoProvee to
klnd of hoNe lnd jn Yhi.h IocalilY
2.5 t c,.Li.t1.! D-.dLal
is; gover@nt lervant or
The facil,lti€s g€nerallY
Mtte! {hat kind of
a cmon Mn, dre@
No
d€Gnd€d bY the tenants
. separate utitities
@ters i.c.
gas, electricitvr
telephon€ and {aEeE.
nl<te stleets and facilltv
to parL the vehicle'
.
. ctean envtrodent i.e fre'h ai!, no d!'t and odour'
ano
clean drlDktng rater.
. Independent poltlon.
. fhey do not nant shale the uppe! o! ground poltion {rth
othe! tenant and landlold p.rticularlv'
2.? r.!t br rad XEt.t t4,.!i6ao
of tbe hoses are d€temined 'ccoiding to the clause
the lent restliction oldinance Hou€wer? ine las
Do rufe or quid€Iines fo! firinq the Mtimm rnd
tinit of any tvpe of d'elllngs The landlord! have the
rlght to &t tb. Et o! hou. snt .. !a! ld. rul and &y
@dtflcati@ 9.n !.1,!y u!'d!i hlt€ i! !!. nnt. lt 1. A1.o
an. to @ne1 th. .t!.ant .t 6y tta sttb r lotl€ Fd6d
of ona enth .r p!..crl!.d by tlra cdt.ct l.e .t .ny ti&, not
n c.r!A!y at th€ coipl.tloD ol th. cott ct t.6.
G.@!dly 501 of th. l.!dlo!d! !t!d th€ cdt!.ct .nd @tln@
th.t! nlatto rltb th. telEt, dosE! th. t lett r.io luE
.9.n
.:t.!ml o! dvlrdDnt.t plobl.' 1... .i!t. ek,
d!.tn, d16ta.c. to bustn€!! c.ntr., ov.!c!dd.d, dlrot
.t!a.t! .nd cllo .tc sd 1nt.!Dl plobl@ 1 .. tst11.t16,
r.t ! .vlll.bUlty, lsltrly .ic .n t! .4r1'rg o! b.tte! os.
chapter
3
3.1 letlodc PloP.EtY lh.oq,
{as developed and lsed in eally fortie! of
nlneteen century and 8!!tlk (198?) .Ia1h.d that ftlst forMl
contribution in hedonic ]ltelatule ra3 fld Court in 1941.
tlov€we!, info@l hedonic atudy {as cde by Ha3s fifteen y.ais
before coult and publi,ehed the tem "hedo.ic." The tem
"ltedoni.s' is dellved flon the GreeL xo.d "liedonitos", ,hich
sijipry rearc Pl€asure. I! tbe econdic contert, it lefer! to
the utiltty or salisfaction rlon tbe conlsption of qoods and
Hedonic @thod
faj,! plic€ o! any goods and .€!vic65 le det€d1ned bv the
rarket toices rith the condition that clket is pelfect. In
the abr€nce ol MlLet the detedln:tio! of price is !e'11v a
big question. there i5 no Mrk€t fo! thc envilomental goods
lnd servtces baclu3e it is gifi of natu!. and not bought and
sold dllectty. rhe cnvtromental qooG ald sE rer '!e
to economic aood3 and the
generally added
bldding ptlce d€p.ad upon tb€ utilitv assoclated 'tth it'
The
Howeve!, unlike othe! conesption goods, lhe houeltg tarket 13
unique because lt reveal. the characteriltica of durabilltv'
herelogeneity, and spattal ftrl!y. The hedolic plice hoder
of idhelent
.ttributes {R6.n, r97'l). The.efore, th6 price of ole house
lelative to anolh€! tilI diffe! with th€ additiotal unit of
tbe dlff€lent attllbut€s innelent in one house r€lativ€ to
anotbet hoDse. The letative Prlce of a house is th€n the
swation of all its nerqinal o! inplf it prtccr esttcted
assNes lhat goods ale tvplcallv sotd a3 a Package
through the leqlession analysis.
air ot ,ater quality
affects the r€nt and lnploves the prop€lty valu€. Rldker
(1961) ras the lilst €cononist {ho eltinate. th€ b€nefit to
hourebold by chanqinq the enviromErtal qurity. He ga@
The e.wiromental characierlstic gucb as
!ea30n. rhich are as folloFs,
'If the l.od M.ket ras to rolk pelfectly, the Plice of a
plot of land vould €qual the ss ol
discountcd streans of b€n€tlts and co!ts delivabre fron
it. If some or its co3ts llseE (€ 9., it additionar
mintenan.e and cl€aning cosls EEe zequiled) o! if rone
of its benefits fa1l (e.9., tf one aDnot see the
be
nountain flon th€ t€lrace) the plop€ltv till
di3counted in the Mlk€t to r€flect peopl€rs evatuttlon
of these changes since ait pollutlon i3 spo'lflc to
Io.atio.. and the suPplv of location is ftxed' theF t!
Ies3 lik.lihood that the negative elfects of pouution
can be !ignificantlv shiftcd on to oth€r na!ketr' fle
sbolld ther€fote erp€ct to find the @joritv of eff'cts
leflected in this @!ket, and te can m€6sule theh bv
(Ridtet
ob.eEving associated ch.nges In plopelty values"
1961,251
It is difficult io ewaluat. th€ envllom€ntal qoods because
they have no pfope! Mrket Th€lefole thev
expltcit real estate cltet beca8€ real
heteloqen€ous in qualitv and quantlty The plopeltv value
linted sith enviloMental qualitv hat been deteruined bv the
rillingn€ss to pav of the household The nost comon reth6d to
In the first
treasure ril1ingne3s to pav is th€ hedonic hod€l
staqe, hedonic nodel assme v€cto! of prices for dirxer€nt
houres. l{hile in second rtage, hedonic model stldies the
indiwidual behavior in the Mrhet i-e eithe! rhe indivtdual
behavio! is fdr .ontinuorE chorce o! dlscrete choice for
fhe thesi3 eltiGtes the deMnd fo! houiing in R'walpindi citv
and .vallates the ispact of open .e'erage
!ent. si.ce teo different tvpe3 o! 3ere!ag' Evstens i €- opEr
locatlonr of
and closed 3eserag. svstetu erist at differ€nt
the area ther€
the city ther€fore lent of th€ house varies and
16s This i3 dle to
seserage systen is open !€nt ie olnios or
un_
fact that open 3ereraqe svsten causes bad sEell'
the
values Bad slell
hygienj,c conditions and Ioss to ae3theii'
n€qatiwe $pacc on
.e€n3 to b€ the stro'qest f'cto! that casts
househord both fo!
ho8e rent and reduces the 'illingness of
oh€! and tenant of the house
3.2
E doDic
P!ic. vats Lo&l
i3 a fuhction of hr3
Asswinq that €lch i'divldual's Dtility
ro'atloa
of
a cdpdite cot@ditv
:";".*.t".
"t
vecto! ot structula1
:p"ciric e"vi.orentar 4€nlties O' a
(no or to63 aqe lnd tvPe or
houee
th€
or
.;;.....t""t."
of characteliEtics of
sr
bv
deDoted
construction)
(qutlitv of
In 'hich he hous' is located
a".- r*"r-".*
to palks' storer and
accessiblritv
tate'
cr1re
;"..t".
t:".t
cork place3) denoted bY N'
valu' moder
fhe assmptions for hedonic propertv
lr€a 13 tleated aE rlnqle MrEer'
ar''
all
urban
Free nobilitv
of indivldual
. choices ar€ avatlabl€'
conplete iofo@iion about hou3ehold'
clealinq
.".-.. is in equirlbris Hith ! halket
5, ;;"t"t
ard 1Es
pric.", giuen che existtng stock of housinq
3.
characteti3rics
Iocation is'
jth
residentaal
rhe
of
le.tal
P!1c€
the
so,
xr, =xr (s,.lvr0,:)
1
as atl hoNe3 ale not h@qeneous in chalacte.i.t1cs
th.lefore, eqr is non Iin€a!, The utility fron ith hour€ i.
2
x, 1e a Hictsiot cohposit€ qood 'tth prtce of 1
'lhole
3
brdget con.tlaint for J location it, M-Rr)-x=0
q is'
The fiEst order conditioG fo! envitomnt'l aeDitv
dutE
Th€
-aR,
paltiat d€livative of hedonic plice fin'tioD Rh ( ) qives
jrplicit Mrqlnal prlce3 of the characteristics Thus the
fron
ioplicl! pllc€ allo{3 or lestllcts th' househord td hove
th€ utilitv
on€ 10cat10n to anothe! The indtvldual raalnlz€
nouse
ar tha! 1eve1 thele turginal implicit price of th't
bec@e €qual to @!gin.I rilllngn€s3 t' Prt'
and o ale
r! fiqur€ 2.1(:), paltlal relatlonshlp bet"en Rh
The
$hrle -rs 2,I(br shov! the Mrsrnal i-pLtctt pric€ or q,dl
,
rt also shors the Mlghal {lllinqDesr to pay ior t{o
indlvidual k and n, rho have chos€n utility mximiztng bundlo
of housins cha.act€risllca, thole :re lab€I€d ,'(4) andr'(q)
characteriltics, the rtUtoqnes! to pay for q cy al.o depend
on tewel. (Mrginal lnplici! prlc€s) of other chalact€li5tics,
Th€ !4riTP function of 1th ildividual cln be derlve by
dif f€rentiatilg the expe.ditule iunction i...
b'=b'(c,9',s,N,u')
s
,hc.e Qi 1s all ameniti€s except q, the eq 5 can €stii.t. the
,elfare
chaDse
of a. tadivid$l associatod tlth
chanqes q,
.s5uing th.t othe! things ale h6ld equa1. Ho{ewer if p leMin
conlt.nt th.n the uelflr€ is d€t.mtned by lnteqratlng b ove!
the relevant ralqe of the change ln q. Ho{ev.!, change! rn ooe
ch.r.cterr.ttc effect thc hedo''c prtce ,sction.
3.3 rl6!.t1crL xod.L .&l r.1l.!€ lc..uL[€at
c@petitiwe prop€rty Mr)Gt the p!1ce of hous€ Is not
unlfolm becaue€ each house has dlffer€nt chalacte.letics and
plices are d€peodent on the plef€lence of the con!@!- a
.esly conltlucted hous. eith accoseories ha. higb pllce thar
old one. G€relally It 13 asssed that th6 supplv of house is
fixed ther€fole the prlces of house ts d€telmined bv dehand
In.
Folro'inq Rosen lr914l Ler Z=1.12.,...2,) represett the '
o! houEes. The equllibEia plice df a house
contain3P-Pc)=P{2,,:r, J.}. rhis luDction i3 the hedonic price
function o! hedonic plice schedule. rt i3 the equilibli@
plice schedule in given mlket It is lmpossible to exclude
rhe diff€rentilted cha!.ct.ltrtlca frd !h. bou.e to @ke 1t
simll.r. Thelefole the h€dontc p!Ic. lche<tule is not to be
li!ea!. Folloxins R4.n (19?4) cons@r J',s d.cletoa involv.s
a urtlhy lunctior.
Ut
=v'l'ir-',,'dl
€q.1
subJ.ct to bldset constnint
mr
r4-,)+t
eq.2
Zl - ch.!.ctelistics of the hous..
x - IoD bousinE good or ttickliln cdporlt.
g@(1.
(!r - soclo - Econoolc v.rl.ble
r
lll pries lnd lnc@ h.v. been no@ll2.d by dividing
rltb thc prlce of "x'
The first o!d.! condttoD. ar.;
2. U:. t
3. n = d.,)+,
.
r
rncrc 4 1. the Mrsinll pric. o! chalact€llrt1c! i,
/- hglang€ aultiPl,l€!.
.
e
=;:r
ir th. urgir.I
r.te or rubrtltutlon betcen
chlrlct6rtstlca of nou.. .nd cdlpoll!. too<t
The individu.l rll,llngn6s. to pay d€P€nds on chalact.r1ltics
ot houle, his iDcom, p!€f.!.nc. and th. l.v.!e of utilitv
.ttalr.d, Thl. te "Roeen bid functlon- t.e,
u1-lz,i) _etqit=ul
flb.!.
by
et
=eJg,ut.dg'l
ditf.!.nliatlrq eq 7, lt
- Iht -
qives
,l^= Ih-t
e-
=U
-U: '2u,U.u,+U -vi
<0
It quantity of one charactellgtics lncleaeE hoLdtng coNta't
inc@ .nd s.tilfaction, bid f6ction inc!€as" ('q 8)' Eor
highe. utillty alm "x" tha bid h.. to be lofer' eq 9 e €q 11'
sho{6 that th€ rolginal btd for zI i' Ies3 a! tle quantitv of
zi l.crsasee, eq 10 !!ds tllat al! additio^aI inc@ lust be
as'
us€d in the bid for hous€. stnce 4=l' it cD b€ tlltt'n
diagld has be€n !ho'n in risure
Th. dilgrd shor5 onlv one cha!'ct'!i3tic z! and hotd'
2.2, ^Q,U,6).6'(Z,V)+B
all otbe! ch.lacteli.ti
Roze!
price llne 1! convex o! line.!. lh€ ildividu'-L
qets
utllity fmction is r.p!€!.nt'd bv th€ ' the lndivlsiblg
ptice of hou!''
zo lev€I of chalact.rts!1cs 'nd Pavs P {zo)
in x
sine the utilltv I. Dnotonicalry lncletting fsction
t"tl
i..- U - U(zt,',". ',"]an| cln b€ inv"t€<l ro sei- x-vI4""
good tlong flth
Eq 13 erpl.ins tha qu,ntltv o! Hlksian
charact.ristics fo! . giEn Ievel of utility'
Th€ hedonic
x -v\zJn - n- el',',nl-
4'tz.'l
Finc
2.2
weltor
M.tl6@l
la th€ bld
a clos. !.lalionshiP occu!' bot*en chtnq€s hold the
that 'ill
function aod .hange! tD the new!'ire
old€r condttion lor tbe
ftlst
Th€
conetant'
*ttta"
,.".t "t
t'r aII i
uiilily Dxlsizatlon Probl6 idpller ttlat ''("r)=4
and P(r,=r(t.!.t) f!@ the blds't conlttaint
'rhus
e'ch individat! i3
As the socio econmic co(lltion of b€ diff'ren! @nq
diff€ientr the bid lunctiont sill al3o
individDl har the srdlnq
individuals. h equllibli@ 'acb
For non
crtlract6ti'tid
the
on
dependins
ho*e
;;; t.. "".
fac' a non rlnear
price
sch'duler
h.donlc
linea!
hir utilltv ritn
cxlri2's
individull
BDt
co!.t!ai!t
budqet
the lineali2ad budget constlalnt shere the Plice3 tot the
charact.liltic pa.@ters are equal to the M4intl prlces lor
th. hous€ ,itb a<tiult.d incme. rncd€ has to b€ adlusted
b€cauee tbe actual erp6ndittle oD houling tith th€ t'ue
equiliblis prtce sch€dlle ril1 diff€! frd tb6 exp6ndttule if
the
the pltc€ of..ch uDit of chartct€riEttc6 i! 6qua1 to
tu=,-P<zr+Lp,'" rh€le d it adjust'd
lncoG_
bv inc@
In eltituting inv€lse d@nd, Plicee ate nodlited
no@1iz6d bv the
but in hedonlc nodel, plice! and lnc@ tr€
th6o!8tr vields
prlc€s of the ns€latle X Th€ ho!€Ilinq
inver3e dedlds sd tba lilearz'd bldget
"..*a.*.""o
tu=',p,,'+'' 'c'r1
slbstitut. by d in €q 15 'it
voul<t b€
'
*=z+'.'t'=
substitutinq eq
15
9tre!
uncoloen3ated
inv€tsc del@d fo!
3.a ixt nt o! the Italk t
pllce schedul€ ls the equillbria price 'ch'dule
in single Mrket. It there are sev€tal Mil€ts
hedonic €quatioD run3 fo. each clket and hence
are
!6ject th€ hvpothesls Providing that the c@fficient3
eqlal. ThIs is b€caEe th€ function6l fon l3 not 'pproprra@
or the equations ale ni's-3Pecitied Such nisep€cific'tion
€ven if thev are
need! not be econonicallv 'ignificant
nuib6t of coNNers
significanc statisticallv lf th're ale
thoee areas can
rould consld6! the aMlnative areas then
'ho
onlv alise then
be treated as Eepalate @!k't Ptoblens
ln fact th€le are often
sepalate crtetr ar€ tteated as one
envirodental issues
aa"a"tae*.f using sMt1e! a!ca3 if the hazald ttst' sater
eg
can be addlessed {ltb in the alea
The hedonic
3.5 stlbj.lity
or!
Ii!€
consse! chanses rcr€ 3lo{rv
the
of
taete
lhat
asEu€d
i3
It
prices; thererore rt 13
hourtne
ovelar'
in
.;i".;.-.""""'"
tine 'ltn
***ttca} tests of lser€qation ove!
*
".
dlNv w'riable for the vear
"i""tb1.
n"*1nn *t* indea For example
hedonic Eeq'ession 'h6re
;;;;" ;'" can be incruded 1! th€
price fio{ewe!'
valiabre is the
or da'ia over tine rhe
"".
""***.
aqqleqat'on
the
;;;"-;";..."
is based on the d€ctsion or cohParrns
.r;;".;;;
"".'""" or the con!*ained '^d unconstlained
;;.;"
".'..
incr€as'd bv mole than t0
€tror
staDdard
the
,t
..n**-..
lto{ev€' aqqresatron over
lqsreq'tion
leject'
;.;..;. ' ".""
lorqer period ls often acceptable'
3.6 hDctioEl
toa
The fuDctioEl tom of the h€donic equatton ha3 to be
deterntned froh the data. E.!Iy .t!die! usEd sinple fulctional
folG i.e. lilearr s€r1-1o9 .!d log ltneai. sor€verr ltllvo!!€n
of the quadlatic Botco, function.I fom but rhe ,!ong tlaDlfodalton of the
enviroMntal wariabl,€ could hrve . lalq€ lnpact on the
enviromental rclfale neaeule, The onitt.d or nirEpectfled
w.rbbles ln Bor-cor also Gduce the fl€xibllity of the
functional fom. The quadrattc box-cox fom did {€1I vhen ihe
esliMred equation contained all tb. ch.racteristics. Tbe
lin€ar Box-coa a^d ewen sinpler foms (lin.ar. seri-Iog) u€le
beat fo. transfomtion,
and Pollakousi(i (1931) sugg€sted th€ u6e
3,7 ta.rsut-.nt of tb€ llvilo@dt v.ti&t r
If the propelty values ar€ to be lffected, the pollutants have
ro be percElved by th€ lesident!. It is €lsv to obtaiD th€
objective neasule l.e. nicrogls p€r cDbic, Pa'tt p€r r lloD'
ItoH€ver t'an3fornaclons of the obiecrive De..ure 6te Ehe
b€tte. ploxy fo! coN@r percePtio!. often, th'se
tlansfomations fould suqq63t increaslng Mlginal daroges flon
the pollutant. Horeve!, 1f lesidents eD t.ke steps Eo
mltrq€te Eh€ daGg.s, Mrqrn.l ddages htv noE b'
mDotonicalty inclea3€d. A3 the level ol tbe pollutrnt
fi!3t (he deg€s 'ould increale 't 'n increaslnq
rate, but on.€ the pollutant 1ev€Le!€ hiqb enough to induce
avelting b.bavio! total da@ges tlght inc!€ases at a
decleasing rate. su .y i! anothe! nethod used for tpe'1lic
chalact.ri3tics. lloreve!, the prices of house do not rell€ct
true perceptlon of the colsuer becalse p'lces
3.8 R€ntl1 v/r lr!€t
Pricc€
plice is tb6 capltaliz€d value of the anticlplted
furure service! provided by rhe ho$€, The lental p.tce i. the
value of those servlces over the c@ing ho nth or oth€r !€nta]
contract peliods. If it i. eapected that there {ill be a
change In th€ €nvilodental conditions in futule, these
e*pectations uould be !€flected 1n the 33Ic prlce blt not in
The sal€
3.9
liliDg of lDvi.EoDDnt l lq).ct8
|{hen thele i3 exD€ctation o! i.fomtton lbout
chanEer p!op?!ty vElue capitaliz.! futule rents on the ba31s
of household €xpoctattons. PloP€ttv valu€ react before the
change in envlroment occu. and adjusted quickly then people
re.,ise their exp€ctations. It ii asgued for Plopeltv value
that .o^suner5 have knouledqe a.out the ch.nqe !D enviromcn_'
Thir considerttion can be considered bv conducting hedonic
rbe.1! at dlff€rent tin€s in th€ evolution of the changing
enviromental conditioD!. xolhas. (19911 studied toxic vasie
d$ps in fio3ton citv ard fosd that negatrve hpact on
prop.ity occu! ehen qov€rm€nt listed the plop6rtv a3 nazarc
,a5te stte. xiel ud t€chlain(199s) constluct'd th€ hazard
Rast€ site by considellnq fiv€ .tate 3tarting flon p!e_!sor
and qoing through rmo!, construction, bring on line and
finally ongoing operations. First tto staqes ale iftlqniticant
uhile th€ legults of last three stages.re Eiqnificant'
3.9 s€Gch Co.tt .!d tir.
oD
th. x.rl't'
that th€r€ is perfectlv cmp'titive @!ket 'ith
no siqnificant transactions and noving cosis to th€ household
A,mosr rear e.care Mrke!s d'e suDje.r to a wtrretv or
trarcacttons and howinq costs- ln selIing a hous€, the ofner
It i3
a3s@ed
detemiles a teselvation price, accePtinq off.r tbat n€et or
erceed th€ re.ervation pric€ and lejecting othe!!. The
lesedation Price i5 set to Mxitrit. the expected v.Iue of the
3a]e !o the ovner then tbe .osts of tliting a!€ conside!'d If
a house is subject to an adeelse 6nviiomental e:lec! this nav
hlve tro €afects The plobabllitv of rec€iving !n offer in '
give. tire period av be !€duced s1!ce there @y be fe{e!
polential coNlrcrs. o the othe! hand, the rete ation prace
probably ,ilt be lover, rhich lead to shorter dulatlon on the
3.10 t.t!.rtiag t!. Dr&d tot twlto@trr
ouUtv
E3ti@ting prefelenc€ or de@nd for coviloMnla1 qualltv ln
gtsps 1
1) Th'
the h€donlc nodel 13 u.uallv don' in tro
'
eltiiation of the h€doni. €quatlon and 2) the PalareEelr
e.tiMtion froi lhe bedonic 'quation Th"e Par@ters
on tn'
calcul.te the Mlginal pric€r 'bicb cdbine flth dlta
data on
quantities of lhe chartctelisticr and socio-econdic
the pulchas. to €stiFte the de6nds'
thai 3ince a nonlinea! price equation provldes
lt eould be
ralying clginal pllces tithi! a single mrket
for anv
possible t6 estihate the dc@nd ard supplt function
data polnt on n1s
€nviromental chalacterlrtica
prlce of
o! ner dd.rd fuactlon camot qive Mrg_nal bpliclt
is to De
lFecific chalacte.isticE If the d€Mnd fnn'tion
oaaitiotul infodtion !u!t be u3ed The
ia...iri.a,
and Ros€n
ldentificatio. is3u€ 'as denonstrated bv Brotn
price
rl932r. thev used the 3lrple case shere rhe h'don'c lhe
dnd
schedul€ !s qucdra!rc in th€ characLerrstr's
Rosen sugg.3ted
rhe qu.draric h€donic
characteristic!, the estiMtes of
function calculat€ elqtnal plices in linear fo@. In . sinqle
Mlket, identification can be achieved in sevelal 'avr suc! as
by excluding som€ charact€listica tlom the defrand equarlon,
isposing restriction on the palan ters or bv nonlineatltie! in
th. equation. A! attentive sav of acbleving 1d€ntlfic'tion i'
by i3rng daE. frot sev€!aI nalkets o/ sepalatlng t 'ough
or tempoi.!!lv. 'L ir n6cessttv to a3sse thar
3prr
'alIy
cons@rs rith tbe sare rocio_e.ondic profil€ have lne s&e
ptefelence r€gardless of the citv in rhlch thev 1lve Th€
hedonic prics lch€dlle and ralginal impltcit plrce ]e
crlcu!ated for each M.k'L and residenL H€ncer de@nd
ln
function is esti$t€d bv cdbintDg d't5 acioss Mlkels
dlffelent Mlkets a parttcuta! tyPe of itdividual troutd fac€
of
drffelenr p'ice3 .nd Mke dif er'nt choices and bec'u3€
thjs djffelenc. several points on ' deDnd curve is observed'
@rE
If the assuiPtion that an tndividuat {ould have tbe sae
this rethod of
no natter {here he o! she lived it aPplopllate'
on a choeen
ide.tification ie rcre acceptable then dep€ndinq
Chapt
r
4
a.1 D.t coll.ctioo
the oblective of this thesis is t. evaluate the impact of open
sev€lage sysrem on lent of residenttal plopertv in Raralpindl
city of Paki3t6n. The di3aenity variabl. for open seterage
systef is the odour editted by eevelage channels Accoding to
ratlo of open and .lored se'erage area i3
'70:30 respecttvely therefole '70$ of the households sere
select€d by etratified randm rsplirg !!om total lanple of
1000, out of total 3mp1e of 1000, the thesis selected ?01
hous€holds by a stratilied landom sdpre from oPen sererag€
a!€! and 299 householdr frm clorad area. The sfuata is ba3ed
on th€ cove!€d alea of the hou3e l.e. squale ya!d, Th€ stratu
an ADB| report, the
1) l€ss tb.n 90 .quare yad
2) Bet{een 90 to 210 square yad
3) lrore ch6n 2r0 squale yard.
of hous. sizes accolding to census lEport5 ir
less than 90 rquale yald are 26t, bet{€en 90 to 210 squ!re
The propdrtlon
yald are 53t and hore than 210 squ.re yard ale 16t.
of th€ thesis i3 to €valuale rhe inpact of open
seferage systeh on hour€ lent ,ith lesp€c! to distance to
sererage and exlstence of op€n r€s€laqe; therefore 2tl sanpLe
point! have been selected through cooqle mp (fig 3.1), Th€
dist!ibution of suple points vas accolding to open-crosed
sereiage piopolrionr 30 16 sarrle point! rere selected fron
open seielage area and I sanpl€ points floh cloEed serelage
The oblective
area *ith !0 hoNeholds on averaqe frd..ch
(see Table 3.2 6 3.3)
slnpl€ poht.
in rhe donth of August-sep!€Dh€! 200?,
The qu€stiolnai.e has 9 s€ction3 in orde! to q.lher
itrfomatlon about the background of the hous.hold, the
intelior of th€ house, the nelghborhood va1!e5/ the anenitles
and dis!renitie3 related questions, .nd th€ health and
dsograpby of lhe household. The GPs cooldinates of €ach
household s63 hearur6d by usiDg the E_TEC
inforGtion 'as also colte.tod about th€ ddographic
characte!tstlca of hous€ho]d! luch ar f.nitv st2€, aqe,
education lewe1 of hougehold head and spouse, and the
occupation of the housebold head and spouse_ The inco@ of
hous.hold was conputed thlouqh tbe hou3ehord re'lth !!dex'
The daia sa5 collected
the theEis do€. not u3e the lental varse of the entire
buildilg but consider. onlv the valu€ of 'ent ol flrst tloor
(g!ou!d portion) of the ho!3e For hdoqen€ity' tne
infoletion about 3tlucture, rnterlor and household
or f1lst
information is !rso taken flom the ground p"tion
fo! taking or coosidering the
floor of th€
sublet
lert of ground portion of the house is that I!'d lord partv'
the first and 3€cond floor of th' hous' to other
of qround floot
Anothe! 3ignlflcant r€ason of cotsidering lent
to
of the house i3 that vatue of garage and rasn ale rttlch€d
tenan! and osner of
The lnfomation Has .ollect€d flon both
the omer
the houee. The lnputed ient of house {a! alred frd
the value of
of the hou3e.
flon the
acculacv sas to be
lnput€d r€nt the
ploPerty detle! of 3me sohala!'
'dnfired
1.2 D.8cltptiv. strtiatl'ct
4.2.1 e.mr.I Info4tion
The Raralpindi city has nole th.n 2 rillion poPulatlons but
553 people berong to Raralplndi in open sereraq€ alea and 43t
people i. clo5.d e.reraqe a!€a. The fifly percent ol
poputation niqrated f!o( other cities due to job (55x) and
.ducation (141) the stattstlcs ehovs that that 64t p€opre 1n
open seselage area.p€aL Punjabi at hon€ ubLre 55t peoPle of
clos€d sererase area .p€ar Punjabl. ?he Mjo. cast of th€
people i3 !R.jput' in both open and cloeed s€veragc area
4.2.2 BnlllnE luaoutio!
It !3 found that 1n op€n and ctor.d sererag€ area ttentv sev€n
percent houres have .lnqle 3to!y buildiDg. sh e 651 bous.s
h.ve doubte story bu1lding. The Mxima plot slze ID bolh
sreas i5 th. sde but the ftan plot slte lE less tn th€ oP.n
The variation 1n lhe nunbe! of bedrodsl
draring roons, tetewi.ion lolnga .nd b.thrddN
the ca3€ of both areas. But the closed seselag€ area has (ore
srluctulal characteristica in the foo of a 9ara9€ ed ram "
HeLI as mole netqhbolhood facillties compaled to the op€n
ser€lage arc.. The niDiod life-rpan of a house in tha crd€d
and op€n lererage area is on. yea! shtl€ the maxins life-span
is 66 yeaB for the clo3ed serer.qe ar.a and 32 v6'rs for the
So, for Instance, the rent or th€
open 3e,erage area.
Ia.qeet-size houle in th€ open sererage.rea is R3' 20r000
Hhile the !€nt for the sde-size hous€ in th. closed se'erage
.rca i3 Rs. 2?,ooo (Table 4.11. loreov€r, the
develoPed than those in the dpen
closed se{elage
ae evidenced bv the flct thlt 30 perceDt of
hous€hords i. the fomer have t1led bathroons tn conpartson
wirh the 16 percenL of louees ]n Lhe open E€reraq€ ar'a ln
aleas {1th .pen !€tetaqe. 33 pelcent of kitchen cupboards are
of {ood rhile it is 55 pErcent in aleas rith closed
gererage. This neaN that 62 pelcent of kitcbene in the open
sefelage area do not h.ve cupboalds lor pla.inq crockely
iiens. This slggests that tlle opeD s.rerag€ .r€a ir less
made
developed conpared
to the closed
seweraqe area,
the mean lent in the opeD a.d cl.sed sereraqe area is Rs. {s?5
and R3, 6592 respectively,
is higber by Rs,
2000 f6! the closed sererage a!ea- The exirtence of open
sereraqe lines at3o decr€ases rhe range in ient,
4.2.3 oiility ..avl€.
nous€ho]d have separate utility metels for
electriclty/ gar and tel,ephone. rAsA euthority supply the
drinking *ater to th€ city and ft is found rhat {3* peopl€ are
not satisfied ulth tb6 rater guality in open sexerlg€ alea
Hh1le in closed 3ere.agE area th. uate! complaint! are 23t
{,2.4
N.tthborhood
to pubtic hospital lDd public part is atso
of rhe open sereraqe alea a3 eonpa!€d to the
closed leue.aqe area. The nean dist.nce !o uolk place,
{Raja b.zaalr Cme.cial @rker) are 21 and 22
mrnute lespectrvely in open ser€lage ar€a a6 conpare to rS and
12 ninute in c1oled s€uelage
distance to pubtic
hospital j,s 20 ninure in op€n se{eraqe area rhite tt is t4
mlnute in .tosed s€uelage area.
The rean distance
4.2.5 lnvt!6|etrt
The enviromental quality i3 also berte. in lhe closed
inten.ity of 3nerl i. tes3 cohpared
wlth the oFen alea. The study found that the household
.ffimed the Mjor reason for siell is distaDce to nala Lai.
rhe qual!Ey o! t-e t'e51 d!! n tn. mornrng t5 oeq'a -J Lh.
closed sererag€ aleas
'ith Iess 3m1l a3 compared to that tn
tbe open se'e.aqe alea. The statistica also sho, that the
evening ai! i! fleshe! than the molning a1! in th€ op€n
seserage a!ea, The study locared the soulce of the 3reIl in
the seperate channels slnce 94 percent o! the open atea i'as
"Nali" for se{€laq€, the .ity has no ploper systcn to drain
rain slte.r {hich thelefore run3 through the city st.e€ts dom
to ihe Mln "Nala ,.i." ln tlte open seu€lage area, s€werage
channels c!!!y the rain water. Since th€ d..inaqe svsten ts
not v.11_o!ganized and develop€d, lain sater rixes f,ith
sererage {aste and reMl.s pooled in the 3treets fo! long
that the intensitv of sh€I] 13 higher in
the slme! seasonr €sP.ctalIv on lalnv davs Th€ noNoon
season in the city of R.valPlndi stalts in th6 months of Julv
and Augu3t {hi1e the tenperatule dutjnq lhese uo'ths t'mins
since the s€rerage
at its @xinu lev€Is for Pakistanchandels ale s.6Etered acrdss the citv Ilke a spide!-v€b' in
order to masuie sererage distance. {6 cal'ul't€d the close3t
polnt fld the Min "NaIa !ai" to the bou3e in anv dllection
The srddy fodnd that the natin@
uring GPS cooldtnare.
distan.e floE hoNe to rhe nearelt Nala Lai is 15?3 metcrs i!
The study also found
the c1o3ed eetelage rvsten ar€a (see Tabre 4
a .2 .
6 D*gE
PhY
ol Bat.h6l
1)
d
the
'rhe freat fahilv-3ize ,a! thiee Personr pei hoD3ehold fhile
fdI1y size ranged fton one to t*entv thr€e persons per houee
The populatlon densitv in th€ closed se'erage lvsten alea 'as
6 persons per house fherca3 it sa3 ? persons pe! house in the
open seweraqe svste6. The 3tudv found that in open 'e{erage
systen area the MIe adult nenbei are nore
The cninm aqe of hou3e hord
3e{€!age
ctosed
head 1! nore 1n oPen s€v€laq€ systen ar€. but etudv tou.d that
avelage age ir nole i. clo3ed 3ev.tage 3v3td
tor healthy 11fe 1n closed s€{erage sFten t!€a 13 rhat th€y
to *at.! tbtn di!6!se5. The llteracv t.te 15
nole ln closed r€{€!.ge syst4 a!e. as cdlpa!. to ope!
.ese!.!r. systs .!ea .nd it is foutd that 1'l houlehold head
.!e gradGEe! and 8l h6.d of hou3.hoLdr Possers crt€r d'gtee
only 4 ! household'3 b.ad in open sevellg€ tyst'h a'er hd€
Mste! deq!6€. lt is llter.stilg tbat education of spoule of
h€rd tn op.n and clot€d ser€r.qe lvsL'n tr'a are velv cl63e
The household in opeD sere!.ge.ysteo !r€ lelf 'nplolcd bv
using thei! .tt1ls thtle houlehold in cl6€d 3€v'r'qe rFteD
alea .!e dolng bu.Ine3s. The occuPation of epouse of bous€hold
{ife'! i! both alets i.205 {hUe SOt spou3es ale ho$€ '!f€'
ar€ te3s
exposed
Chapter
5
lta P!a!eDc. of go.l1
.
5.1 tlttoahrotioD
0!e of tbe ba6ic probleme of any developing country is to
plovide shelter to the lov Incon€ gloups, The housinq does n.t
nea. sh€lter onry bur lt lncludee the s€lvic€s lelated to it
i.e. sanitation, ser€rEg€, str€€t cordltlone and "ate! et..
The qoverment pol1.1e3 lelat€d to tbe provlElon of such
facilities have greate! thpa.t on the quallty of tife and
standald of living. Th€ d€MDd lo! housing !€flects the
,illiDgless to pay for a .et of ho!3ing 5.!w1ces.
is a set of Gny goodlt the nurber of bed.6tu,
bathrom, quality of 1ocal lcpic6s a.d utilitiesr tidines3
of rhe neighlDlhood and qElity of th6 Iocar
The house
(Katherine. 2006) Tbe dtffe.ence iD value Mv be due to nolsing
and neigbhrhood charactolt5tic. Hith @nitv or d*aGnitv
"It happ€n€d that: houee {ith dlffelent
different locations ntqht h.v. 3ame p!1ce and a
stmila! house tn dtfferent loc.tion have different
that Pllce 6tluctule refle.ts t'o
sepa.ate though related set! ot lnfluences Hhich fo!
convenienc€ are temed drell,ing and location factors."
(cirkinson.
1973) ,
Jdes and Beth (2002) obs..ved that locatio. has alfavs beed
an important deteminant of p.op€rty'3 value and the fdd
to the city centre h.. the higheei value- Befole lodern
tlalsportatiorr nost p€opl€ pr€f.rred to tive closed to vo!t.
closed
it i3 the quality of the a.ea vhich attracte lhe
residents, ,orkers and busi.ess tunaqels to settle. rnenities
{green field, fresh air etc) and th€ disarenity (noise, du3t/
dEain elc) often lnfluence the d.cision! of houlehold ln
developing countrles, it is erperlenced that th€ calse of Io{
deGnd for enviromnt.l good3 i5 Poveltv that is ,hv
households do not attach ueight to am€nitv and ignore !i5k
factor fo! health €v€n rhen they xele awlre of the threat and
pelils fo! bearth and hygiene conditions. rhe los incoG of
houeehold creat€E a gaP bet{e€n dehand and supplv of
enviroMental goo&. Slnce there i3 no Mrk€t for
enviromentrl qoods therefore plice (.ent) of house €ptules
the {itlIngn€ss of househoLd for ai! qualitv, {ater qualltv
Nov day3r
.nd distanc€ fron a toxic aite.
5.2 lit t tut. R.vi€t
plopertv
Thele is no published wo!k in Pakistan on hedonrc
on
value for exeining the inpact of enviromental e$ellalitv
house p!ic*. llor€ver, xinistrv of bourinq have leportr on
BuildiDq
<lemand of housing uniie ard according to Hou3e
houles
Fj,nan.e corporatlon of Pakistan, the d€Mnd of ulban
t
grows at a rate of 3{ p.a. rhich creates a lhortaqe ot
niIllon house lnits in urban 6reas (RIzvr' 1993) The
price or the
3hortaqe of hous€s not onlv inclea3es the c6pital
house but also caur€s incr€ase in the rent
Ridker {195?l concluded that air Pollution has 3iqniflcant
eftect on proPeltv vatue, thelea! rreeMn {19?4 and Rosen
(!9?4) inteipre! the hedo.ic plopertv nodel by takinq lhe
d€rivative of hedonic ptice function 'ith re3pect to air
pollution, They estinate the narqinal inpliclt prtce fo!
iFprov€nent
in air Poltutlon
literature found that sewerat studi.s have been done in
other developinq countries Iike India about the estin.lion of
ddand of houlinq unit an<t measu!€d the inpact to leduc€ air
pollutioD. uurty et aI, in 2004 eatiMtes rh.
function of ulban alr quallty 1n tbe cltv of Hvderabad and
secunderabad in rndia. He found that a tvpic.l househofd in
twin citier ha. levealed anDual rilllngness to pav foE
reducirq urbatr air pollutlon flom the curlent level to the
saf€ level is Fs 4,499.12.
The
et.rl. (2000) found that "it i3 importatt to neasurc
denand for housing in the conte*t of qrotth of citie3, tncone
expaNion lnd cha.ges in relatite plices f,ffective policv
lequlles knorledge of hor MrLet allocates lesoutces to
hou!ing, ho{ hoheornels and leotels bld fot hot"tns' ho'
hor
developeis a.d conilactols re3Pold to houetng deMld' and
Plyush
govelMent regulations and actions stinulate
housing
mlket actlvitv".
s.h€dule of .ftnltie.
(r{irchell et al,19?5) rh.n the citl i5 3Mtl and open' the
prop€lty values at anv location depend onlv on arenlties at
that location. I{ofewer fo! closed citv, plopertv values ai any
lo.alion depend on areniti€s throughout the city ln th€ smll
be used to
open nodelr cioss 3e.tion regression re'ults Mv
predict a ne{ rent schedule The rate of re't schedule mu't
The renr of the house depends on
a
decline, a3 ole nove fulther flon the centla1 bus1ne35
disrlict (cBD). The gain iD utililv fom denltv at a fa!
distance foln cBD i! 1e3! than the utilitv of tlatsportation
so hlqh ar
€xpense. Trampoltation costs ar€ asssed to b€core
the citv tn€
sone distance fron the cBD but at boundlrv of
of subulban c-!Y
Hedoni. plices are defined a3 the inplicir pltc€s of
atrribures o! chalactertstica (Rosen.19?5), Inpllcit p!1c€5
are estieted by the first steP legres.i.on an.Ivsis (produc!
price !eg!eesed on cha.acte!isti.s) in the con!tructlon of
hedonic pric€ index- aly Iocation on the plan
conpetltive equilibli@ of buyele and sell€rr' Thus a'v
Iocatio! on the plan is lepre3ented bv a vector 'ith ith
charact€ristlcE. The eristence of product diffe'entiatio'
lnpli6e that a wlde valietv of alternative packages ale
a'aitable. cohpetitlon prevails b€cause slnqle agenB add zelo
reight to the Grket and tleat plices p(z) a3 palametlic to
their decision. rt ts assded tha! a sufalcie'ttv la'qe Dulbe!
of differenllated products are available 3o
warious corhination of z is coDttnuou3 fo! aIl plactical
purpose. as the tasie (a) of each co!3wr varies th6lefor6
the equilibriu value dep€nds on both Incore (v) and taste
uurtt in 2o03 found that urban ai! pollution cause! bealth
losseE
d@qes due to nolbiditY and lortalitv effect3 a3 also
of enviromenlar an.nltv benefits due to r'duced vtsibllltv to
lhe Iocal restd€nts. u€.eulehent of !he3e lorses f'd ai!
pollution i3 ihportant in o!de! to fomutate th6 envirorental
Trudy et el (2006) estiGte the loc6lized
disd€nity as a ploxv ror peiceived risk and fouDd thlt th€
ho{eve!' nav
magnltude of distance erfect on housing pricesr
the direction in 'hich it i5 being reasule<l The
The
dista.ce effects frav not be the sde in all directions
plopagate
novem€nt of sulface or ground'ater could 'oncetvablv
the dacg€3 frm dater Pollution farther in lde direction
affect€d bv
than oihels and visual and noise pollution can be
depend upon
Jan€t E. Kohlase (1991) e!tlnat€ the tnpact of toxic sr.te
elte on housilg pric€s in Bostoa coloDy of UsA and found that
the bouse *bich are closer to the toxic ait€ face less
nalginal value ol $4940 and S 34?6 tf house is 1_ni1.. 2 nile
dist.nc. range respectively. selgio et al (2002) tound that
aplrtents located in the pioxiniti.. of the 3€ra9e t!.atett
3tation h.ve lelatiwely 3@11.! Prices, in relation to ritril.r
ones loc.ted
If thele ar€ no changes ln.nvilom€nt then the hous.holds
have the same utility. flh€n th.re 1! Iittle scope for !h€
inprov€h€.t io enviromental valu€s, then the coneaer'3
utlllty and th€ hedo.ic plice lch€dufe
Itor.r.., the orner of th€ hous. .a!ns caPital qain or loss du€
to cnange in enviroreDt. Th. .n.lyeis c.n also t,e done for a
Ioc.Iiz.d eatemality rhen ther€ ale tlansactions ad mving
cosr3 ,ithout esti@ting th. bid turctidn3
(Palnquist 1992b1. The exisliDE liter.ture on lhe hedonlc
prop6lty nodels found negativ€ .ttelnllity in the shaP€ of bad
smell and distance fr6 !€rer.gc treat4ert plant o! toxi,c
raltc !1te on house !e.t. Th. oPen re{erage channels/ svlt€n
ele th€ unique charactelistica o! Rafalpin<ll citv. Thi3 pape!
lncolpolates the impact of b.d 3tr.11 orlglnating !!om
dlftelent typ€s of open serelage rystem tn Ratalpindi cltv.
5.
3 !{rltlctl
xo.br
:
open s€velage srell on house
renr, for this purpo3e ol,s technlque tE used to estiMt€ the
d€h.nd for rent in Raralptndl clty The depeDdelt variablE js
The study
estlmtes the inpact of
lhe rent of the
house.
t (.g._hs, p32_hs, bd_tur d4_he, tvl-hs, bth_h3,
grq_h8_av, lm_hs_.v, hl_ft_ch, nt_bt_tl, cb_b!_rd,
cb,kt-Fd, vn-dr-tnr vn-kt-wn, !t!,cod, tln-hos,
rt_!p-@. hh-rlth' ss-op-ll,
ft_col,
tihjik,
sr bk_la, ra_3c_la, sn_in_oc, sm_rn_al.
The op€n 3e*e!age syst.D has different tvtes of ridth and
deprh and the intensity ol 3c1l valies accolding to the
sevelage type/ lherefo!€ 1n older to diff€r.ntiat€ the ifrpact
of each t}?e of seretage, the lhesis leed dl@16s 'nd the
mdel ao! diff€t.ni tt?e ot seser:g€ svstem ale give' b€lor'
In this nodel the variabt€s shich 3!e telated to
!tructur., nelghbolhood .halacteri!tl€s and faclliti's 1s us'<r
to eapl.i! the r.nt of the louse.
r! thir tudel the phYelql chaia.telistica of op€n s€relage
3ysteh ie incorpolated to explain their inPact on house reni'
The dlmies fo! these v.!1ables arer
rn rhis nodel intensity of snell fron th€ oPen seH€rage sy6t€n
is us€d !o explain tbeii inPa.t on house i€nt. Tbe dwdes for
the3e vsriabres.re,
5.3.
r1 xo<r.I
a
In thir hoder physical .hatacteli3tlcs and lhell int..ritv
als used to explain the vali.lion In house !ent. Thir rcd.l
is Ged alMe variable of se.ond and thild nod€I.
5.1 i..ultt
.Dd Discu..ionr:
PIot sIze, no of bed !oom. t€].vl3ion lounqe, b6th !oon,
store, garage, 1aun, distance ln tih. to parL and hou3€hold
rearth hav€ slgnificant !6sult in.lI fou! nodels at !{ tevel.
Iheleas, tf th€ bath-om Mterill t3 of tile, tha. it ha. :
poritiv€ i,npact on house ient .t 5$ significance l€vsl. The
disrance to hospital in tire by using anv kiDd of trjnspolt
also hav6 a neqaliw€ tupact on house lent at 5t l6vE1 in all
porltlve and negativ€ tnpact on
of th€m are significanl Erccpt
availabiliry of draring roon and draHilq lod soo<l-cupboald
sbo'e .iqnifi.ant i4act oD hous€ lent at 10* Ievel.
The othe! variabtes atso has
.Il the independ€rt vallabl€lr awailab itv or galage
and larn ha! biqser inpact on the hous€ rcnt bv tu.929 and
R3,1435 p€r nonrh lespectively. (t!bl€ 5.1)
Ahonq
5.
{.:.
independent va!iabl€s explain 63C variltion ln
the dependent variable. The adiuste<l R-sqlare i3 3l3o 0.63 but
In thi! rodel
1s siqniticart.t
10t significance level. th.
F_
5.3.4
raod.l a
rn thi! model pllysical chalacteristics rnd snel] int€nsity
are used to erplaln the varlatlon in hou!. rent. Thle nodel
is
used
alr the vartable of
3econd and
tbi.d
model-
5.4 R..uIt. tiral Dlrc"ussiolt:
Plot rize, no of bed roon, television lounge, bath roonr
srore, galage, 1ah, distance in rire to palk and household
realth have 3ignificant result in all fou. nodel3 at 1l level.
thereas, If the bathlooh mte!1al i! of t1t., than it h:5 a
positive inpa.t on hous€ lent !t 5t significan.e level, The
dista.c. ro hospttal !n ti@ by $ing any *ind of traneport
al3o hav. a neqatlr6 lnpact o! nouse lent at 5i levef Ln al,l
ilFact on
of th.n are signlficant ercept
The other valiables also has po3itive and D€E.tiwe
avallablllty of dla{lnq roon and dra{ing loon wood-cupboald
shors significa.t inp.ct on holse rcnt at 10t level.
rnonq alI rhe i.d€pendenr valiables, avallabllity of galage
and lain hls bigger inpact on lhe house rent by Rs,929 and
Rs.1435 p€! honth lespectively, l!.ble s.1)
independent va!1ab1ee exptain 63t wariatlon tn
the dependen! variabl€, The adjurt€d R-square 13 atso 0.53 but
In this nodel
the constant is significalt ac l0l siqnificance
telt value is signlfrcant at lt level shoting that rcdel i!
hiqhty siqnific.nt.
5,4.2
Phyeical cbalactellrtics of op€n sererage sysien. are he Mln
indop€ndent valiable. The hodel shoas that existence of open
nali in flont of house decleaee3 th€ house leht by k.672 p€r
nonth {ith 1t siqnllicance 1ev.1. open se'€lale na}a in front
of house also de.r€ases th€ house lent by R3.760 pe! nonih but
at 5 X significa.c€ l€vel. Th€ oPen serelage.ala ln back sid€
ot house have neg:tive ihpact but not significant. The .eason
to! lGiqnificant inpact ot bact.ide ftla i3 that it is not
vislble all the tlne and hence household ,illingn€ss does not
af!€cted by it, ThE eaist€nc. of seni cloeed rain d!.in
inclE.r€s the ,illinqnes. of hou3ehold by Rs.339 at 101
signilicane level. The lain dlain does not artying sere..g.
usu.lly therefole 1ts existenc€ does not declease th.
fllllngness of
household.
The v.I!e of R-lqualed ts 0,611 and adjusted R-squared 1s
0.626 rhich is hlEh6r rha. all th€ rcdel shoelng that thi!
ibdel explaired no!. wariatio. tn depend€nt
hous. lent by the explaDatory vali6b1es. Th€ F-test 13 ar.o
liqnificant at !{ leve1 shoulng that nodel ts higbly
s19ntllcant. Thls nod€l is nor€ signifi.ant than the entlre
rodele as its Adjulted R-squaled v.Iue i3 highe!.
5.4,3
Sh6l,I intensity flom the open 5€H€rage syrten
indEp€nde.t variabler for thls model. open sexelaqe systetu
have thlee @jo! tytes, i.e. srall nari in front of house,
scll nala and nali for rain dlaln. Intelsity of sGrl depend3
on the types of 3e{€!age systeB as w€ll
seHerage. The paper dlvide the snell intensity Into
cateqolle3 i,e. allayr ehe1l and occasional rnell-
It i3 our volkinq hypothelis ihat the hous€ rhich 13 ctosed to
open nala. nala lal and nali lecetve continuous snell and th€
hous.hord rtvlnq
a.e habitant to s€r€rage srell
and h€nce th€y are IEsr Filling to sefleraqe snell tn house
rent. The households rhich ale tar froh the severage systero
o! f.ce lain drai! s€u€laqe sy3ten Ey face occastonar snell
and are hore ,illing to pa! for the 3nell f!€e enwllo@nt.
fo! this nod€I j,s 0.531 sith adjusted R-rquare !r
0.617 3ho*ing sirty thlee percent variations i. dependent
vallab1e has been explained by the etplanatoly valilbles. ?b.
R-squale
hour€hold uillingness d€creases by Rs.204 per nonth where the
srclt inteNj,ty is alrayr. The rilliDgness of
significant but the t-vaIue is closed to 10* .iEnifican.€
Level. Ho$es for occallonat sn.tl intenelty have hlgher ient
than alrays snell iDtensity a3 the villingn€ss fo! the
holsehold .i3 decreased by Rs. 139 pe! nonth, Th€ nod€I is
signlrican. as the f-!€!t value 1! significant at 1t Lerel.
of open sereraqe syst€m (nalir nala, back
3ide nala and seEi cl,osed DaIa) and inteisity of srell
(occasio.at and alwaye s4ell) a.e the nain independent
valtab]es. The pulpo3e of this nodel is to lustify the resDlt!
of nodel-2 and nodel-3. The nodel sho{s that th€ expected
signs and the 3iqnificant walu€ of Din variables .€min sde
a3 it is in model 2 ahd 3. Th6 uillingn€ss of household is
sane for Min valiables.
types
the varue of R-3qua!e is 0.641 and adjusted R-rqu.!e is 0.625
which is equal and less lan sodel-z, As far aE F-test rs
con.elned it is signiftcant at lt l€vel,
5.5 Conclulion. &d EolicA' R.co.n t ti6.
the hou3ehold lpend! @jor share of its expendtlure on housinq
and plefels to aveiL na*inm fa.ilities
'ithin the budget to
Mxtnize utiLity. The structure tnd the intelior
p]ays eltat lot€ in d€cision m6klnq. The hous€ vhich is neily
conetructed or has u.de.qone Mjo! altelation in the lon of
chips, tiles and {ood eork rould dlar no4 @ney in the fom
of lent as .dpared to a sihila! house uithln the sane
Iocality, The netghbolhood slch a! rerket, b:nk and schools
do not hav€ llgnlflcant inpact on houee !€nt b€caus€
househotds hawe nunber of options {ithi! the locality rioseve!
Gove.ment college/ Public Park and HosPital play an itrportant
lole in detemination of !eni. closer the dist.nce to publi.
n€igbborhood no!€ vill be tho hou.e !6nt.
The ]ocation dllan€nity such as op€n sererag€ svst€n I e. op€n
nali decrease the rillingn€ss ot household to PaY lore lent
€v€n rhough th€ inie.io! of the bose is good. rlhele as in
thore aleas vhele local autholi!, develops the
flon op€n to senl closed one the ,llli.gness of lhe househord
rf the local autholity irptuves the exi3tinq sererage svsten
j,! rill not oDlt inclease the capir:l walue of the propertv
but arso increas€ the atnGphele. The ,illingnes3 of th€
household xi1l be utilized to genelate the revcnle fo! public
TabIe
Lis! of variable of chapter 5
of b€d .od ln ho$e
of bathlooh in houre
Dlmy for brd loonrs cupboard nade of lood
Dley fo! draei.q .@'s clpboald cde of sood
DlDy r6t xrtchen'. cupboatd @de of v@d
No of olaYing
D|my f.. Ava abilily of qllaqe rn house
No
No
Dlmy for availabllity of lah i! h6ure
tuy for brthrod/! tarl s.rerialr Tlre
D\ey roi fto..'s Gt.rial: chlPs
Dlffy for occupation stat!.:1=omerr o=tenant
Prot size 6f house
Dlmy for 3di cror.d n.ra for .aln drarn
Rent o! s.ound Poltion or
Dlmy for sn€II int€n3itv .rtavs in euiroudl's
in!.rcity occ'sionar ln
sulloundinq of hou..
for.vailabrlttv or
Dlffy for ava abirltv of nala in flont hour€
DlMy for op.n nall In flont of houre
Dist.nce in tr@ !. hosPital: using 'nv
to Pa!k: uelns anv tlaNport
Dllmy
.nv tra.eport
to colleg6: $inq any
Dsy for availab ltv of t€tevislon lounqe !n
lffi -. ***" r@'s vent'atjon: 'i'dors
Dlffy for kltchen's
DlMy for availab lty of
chrpt r
6
6, Dl.t&c. fro6 gourc. o! &.II
6.1 tltlodnotlo!
A hoNe te a 5.t of tuny goods c@Prising tbe nuaber of
b€drctu, bathlods, th€ quallty of local !.!wic.3 :td
utlllti€s, th6 tidlnes. of the naighbollood and th€ qurllty of
tlte local envilotwnt (xi.l, 2006). the diff.!.nce ih v.lue ol
hous.s thelefore Ey b€ due to th. houliDg ed n.lghbo.hood
chaactsli5tics h.vtnq @ntty o! dis.snlty v.r!es.
has alrays b€eD .r irQ.riant d.temin.nt of Ploperty v.ru..
B€to.e modem t!.n!po!t.tion, ndt PeoPl€ Pt.!.r!ed to liv.
clos€ to !hei! puce! of rclt. Todlyr it i3 the quatity of
the neiqhboihood th.t <letemin.. th€ cholce of lesidence to!
such as qreeD fl.lda, f!e.h ai!,
morr p.ople rith eritias
etc.r .s oppoled to dilamniti.! ruch a3 nols.r dust, opeD
drainsr o<lou!, etc., often influ.lclrg th€ d.c1sion. of
The easureren! ot locll1z6d @nity .nd dt3enitv is
itrportant fld the vierpotrt of envtrotmntl] pollcte!. sinc€
th€!€ i3 no dllect @!ket fo! envilo@ntal goodr, on. r.y to
undetstand th€ valu. ot esvtio@ntal goods t3 by ex.mining
hor thelr prer€nc€ o! rbs6Dc€ alf6ct. th€ housi.g Mrret and
houeing pric€r, Tlter. ale a nunbe! of sludles vhjch us. ihe
ihplicli prlce of a hour€ to ex.hi.e th€ r€l.tioNhip between
attlibute3 preference .Dd the Price of prop.ttY. It i3
por3ible to ds!.!nin. the M!ket p!ic. of. houliDg unit by
lhe buyersr evaluation of th. holring unit'. bundle of
tnher€nt attltbltes rlch a3 loc.tlon,
neighborhood att!ibute! (Fleenan. 19?9) .
strucllle
.nd
In o!de! to estimte the tnpact of 6nvlromental ameniti€s and
dlsanenlties on housing p!iceE, schola!6 use
plopelry price, Hedontc w:ge and conttngent valuation nethods.
N€Ison €r dl. 11992), Reich€lr (199?), Michaels and Snith
(!990) and cderon et al. 12006) ,ho €xanined the tocalized
envlromental disan€nity of a sup€rfutd site fo! perceived
!1s1, folnd that distance h3s a significanl i.pact on housitq
Hovever, Lh€ di3Lance inpact Ey depend on the
dilecrion in fhich it is belng nealuled. Kothase (199r), rho
estiMted tne iipact of a to*tc ra!t6 site on houslng pli.esr
found that the capital value of th€ house and the distan.€ to
toxic !it6 r€re positivery co!!eIated, sergio e! al, (2002)
found that apartments located in.l,ore to a seuage lreatn€nt
plant carried relatively lor pli.es in c@parison Hith thoEe
Iocated at a greate! distance f.d the pranl.
h.donic atudies 8e data floh l{est€h countlies. only a feu
u5. d6ta fid non-l{esteln and south asian coutries. Thele
h.3 b.e. no enpirical ,orl conduct€d.o far to inveltigate
pr€fe!€nc€s rith 4speci io Iocaiional diseelity in Paki3tan.
5.2 lit
att'4 A.vid
The houring prices are not orry an indicator of houslng
attributes but also an indiclto! of neighbolhood and
envilomentat wariables. Tro naiD apploaches have contlibuted
gleatly torards the th€oletic.I volk on Hedonic prlce.. The
f1.3t appioach i3 deliv€d flon Lancaster's (1966) consle!
theory f,hire
frm tb€ hodel that Rosen (19?4)
postulat€3, Both these approa.her ain to inpute the price3 of
attlibute3 based on th€ relation3htp bet{€en the o*erve.l
p!i.€s of differentiated ploducts and th€ nulbe! of attributes
associ.ted Hith these products,
Most studies conceive of lhe locallon of a property 1n terro
of fixed and reLative location attrlbutes. scholars quantiry
the filed ]ocation attlibutes vith respect to the rhole urban
alea and peltaln to sone fom of an accessibility neasure
laollain e ,tinene2, 1935; orford, 1933)
qu.Dtifies r.l6tive location attributes throuqh su!.ogatc
me.sures such a6 clas. and racial cdposition, aeslheti.
potlurion IeweIs, and ploxinity to locar
Ihe trad!! rordl vree of locdLion masur6s
a.cessibitity ln teru of a.c€.s to th€ central Eusiness
Dirtrtct lcBD). Acc€ssibility, in 'hateve! foln it has been
heasur€d, has 3one itfluence on housirg pltces (McuiIla! cs
al.. 1992, Palmquist, 1992; Ridker I H€'DI!9, r963). It i5
collmn to a.sociate transport acc€ssibllity {ith th€ ease or
cdurinq ro and flm anenitier shire travelinq tlne. cost of
travel, convenience, and avail.bility of diffe.e!! transpott
nodes ale fay! to @asu!. it (so et al., 1995).
Arod and Pollakorski (19?7) foun<t that the d€glee of di3taDce
trd th€ rat.rfront 3iqntficantly r€ducos . propelty's selling
plice ahile the viev uae statlstlcally insignifican! for the
lak. in se6trle, oalhlngtor. Horever, Tse a.d rove (2000)
found that . cenet€ly vi€{ has . negative tnpact on plopeltY
pllces in trong Konq ein.e !e5ldent3, rho ale nostty ethntc
chin€ler avolded d{el11n9s that have a cemetery vler becausg
ot its as3ocialions riEh death rhich @de i! an tnaGpiciou!
a disdeniiy luch
landfill siEe us.d
Hedontc propelty hodel studies focusing on
as ! superfund siter toxic
dirtance flon the dis.henity as a key variable along vith
othe! variables fo! r.glession anatysis,
12005), she €stiMt€d lhe Io..tized enriromental disa€.ity
(a superfund site) a. a proxy for per.elv€d rist, she found
that shile lhe eqnltlde of distance has an eff€ct on hou3lng
prices, it my dep€ld upon lhe direction tn trhich lt tas being
Kolhase (1991) estinated the lnpact of a toric
,aete.tte on housj,Dg pric€s and found lhat the capital v!Iu.
poeltively
of tb. house an<l d!.taice ro toxic sit.4re
coilelated. t tch:els E smith 119901 ur.d dl.t.nce to ltlatify
th€ study 3dple lnto "pr.hi€!". "above rv.!.s.," ".verage"
and "belo, av€!.g€" prop€lti€r.
yo3! of the H€donic studi€s u!.d a.tngle dismnity along
rith hou.tng, neighborhood .rd 6nvlto@nt.l valirbles it
o!de! to €stiut. th. d@nd for hou.ehold!. Itor.v.rr Thay.!
.rch !s 3ererag€
.t al. (1992) !3ed trultiple dileniti.s
t!e.t$!t. stotat. ..d dl.posrr in o!d.r to !t!dy thel!
Pllrqutsl ec.l. (19971
neg.tive ilpact on proPe.ly !.rue!.
incorporate industli.l hog f.miDg t. the Hedonic plop.rty
bod.I elrh an a.yrmerlic <tt.r.nce fuctl,on Bheleae camlon
{2005) extends rh. dlstlnc. protile fr@ tfo dten.lona to
thr.e dieD.ions in ord€r to expllh the bpact of dl!.ct1.nar
bere.ogenetry, in t€t6 of distlnc. t!@ a lup€rfund rit.r on
hou.tng valu€. H€ .!gu.s that It the {ind di!€ction i. !n
control t1!d bl,oG f!6 th. r.3t) b€lor€ .siiDtion, then the
estlete ,111 be plecis€,
Studte. on landfill sit€s hrve found that th. n.g!tiw. tt p.ct
o! ploperty values b€c@s trole signlfic.nt after th6 sit. 1!
Iisr.d !r the EPA h!2ard lirt. Gry€! .l .1. {1999) fourd th.!
householde overeltirut. th. rirl of hazald r.st. sites f,hich
h.ve . s€v.r. ttrpacr on propelty v.lu.!.
p€lc6ption of th. P.lc.lved !l!k b.cu. ho!. lational onc6
infotutlon on EPA lenediee i. avail.bl.. &nnald r C€ckl€t
(1991) fouDd th.t di!t$c. do.s not Eff.ct prtces 1n Praces
,here r€nedi.s .r. qutck ard .ffective €ith.r betole o! aft.!
the liltinq .! a hazard {aet. lite. lloe.ve!, th€ distancc_
dep..dcnt prt.e effect becdes 3igniftc.nt rhe!€
tak.n to r.@dy the llDact3 of the h.zrrd va.!e Elt€
sumry of enplrical hedoni. studles based on <ustance to
disdenlty found that distarce has neqative iipact on house
value .nd it quantify the reduction in houle vatu€ by nete. to
The
kir@eter o! by pelcentage, (table 5.1)
6.3 lq)lric.l
xoal,el
Tie study use3 housingr n.tghbo.hood, elwlromental and socioeconmic valiables based on th€ cristing ltteratur. {Kolhas€r
1991). The estihation i! in linedr and log tln€a! rorn for
the stabllity of the Hedonic p.ice fulction.
+
Axt+ p,x.+6,2'+/
p,x,+ p,x1+ p'x"+ Btx.+ p'x'+ p6x.+kx1+
4x.+ p.x,+6'2'+u
(r,\- 6,+ p,xt+ p,x, + P,x,+ P.x.+ Psx'+
(tiv,')= d,
+
Plt+h\
tn both lileai and Ioq Iin ai nod.I the zr '!e tne *rerage
.elated v.liable. shere i' t -5
the se{€lage valiabLes rhich are lelated to
physical €xistence i. tlont o! back3ide of the house!'
rn thlr
mod61
In this nodel the dlmy for odour sn€II
thlouqhou! the dav is $ed
r-
Odour
6.3.3 l5&l
snell in al!
Else
is
0
3
In this nodel intengitv of srell flom the oP€n serelage
is occalional in ai!. Th. dlMv varlab1e it this fofr is
1'odour aluays else
i.
o
3vstem
In r.his Ndel se{elag€ distan.E and distance squale
vallable i! used to €xPlain the effect of 8e,er!g€ on house
6.a D.r4i9ti6
of v.!i.ltl6t
s4.. t nt [r): lle coll€cted inforMtion on the honthlv rent
of the hou3e from each houlehold. Il. collected the ioputed
!€ni fo! onlv the qround-floor portion of the houle
i!!€sPective of fheth€r rhe occupant fas a t'nant or tb' om'r
hlhlelf. In order to avoid the ovelltated amoun! of lmpuled
tbe
rent the accllacy of the hou.e r.tt sas confi@d through
property deal€r and fron 61n1la! house of sane s!!e€t from the
EIot sh. (&): fle sive tle alea of th' hou!' in tquare va'dr'
qrould
lle ule both the oPen as sell as cover'd area! of the
plot 3ize 1'
portion of the house for plot siz€' The tem for
is "Ma!Ia-, ehe!€ on€ l{arI' is equal to 30
tlr.
".tay """.
v6riabl€'
r..r!od (&): Th€ bedrod of the hous6 !3 a dis'rcte
cdpu@
In house3 rith mre tha! tfo stolles' fe io6k c'r€ to
only th€ bedtoons on the glound-floor o! the bo$e
i3 a dlmv
D4rirg tlo (&): Th€ dhtinq loon of the hoNe
valiabl.. $e ule a Proxv fo! the draring
!s.s the loom for gue3Es a'd visitors onlv ald not
household
for sleeping Purposes on a 'egula! basis'
valiable 9e took
E llhlod (&): The balhroon is a disclete
calcutate the actuat figule lor houses {ith attach€o
.are to
bathroons and those rithout'
(&): The asailabitjtv
of a galaqe ln th€ house is a
ror at lea3t one car
dllmy variable fle con3ider garage spa'e
c.trg.
!.8 Oq): The availability of a ]art i. front o! at the back
of lhe house i! a dlmy varlable, tor the outdoor sp.ce to
qualify as a ]arn, lt had to confortably accomodare al least
Dl.t .€ t r8l (t ): The distance Eo the nearest PDblic Park
in telN o! the ne!€r of ninut.3 it rould take u.ing any nod€
Dl.t$e to lo.plt.r (vr): The dlstance to the n€ale5t Public
trorpital in te.ms of the nunbe! of ninutes it ,ould tak€ using
any node of tr.rspolt,
o<lour occa3ional lzr): Dlmy variable for the iDt.nstty of the
sreIl that reMtns in the ai! thloushout the d.y in the
vicinity of the house.
odou! Alrays (zr) t Dllmy valtable for the lntensity ot the
erell on occarion tn the eicinity of the house.
open seferase r".li l(zt: Dlmy v.rlable fo! any type of open
3ererase to. na.lll 1! front o. back of the hot3e. I{e arso u3€
thi! waliable to e*plain the open and closed serer:g€ syst4.
serelage Distance (2r): Distance to tbe nearest N.I. ,ai in
neters for ea.h house uhtch ue calculato u.lnq cPs
coordinate3. fl€ scale the distance i! nete13 betwee! each
the n€ar.st rlala f,ai.
s€serage Dttance squ.re izt: Diltance-sqDa.e t6 the nealest
NaIa Lai in ne!.rs. The erpected sign of distanc€ rqudre in
!.g.ession analysis to! diseoDity ls neqatiwe, means that
hou3e and
intensity of snell decreases ,ith distance.
6.5 r.!sl.t
aad
Di.cu..lotrr
valiable! fo! hou.lng cbllact€ristics have the erp€cted
!l,qn ln the open, clos€d and pooled lew€laq€ areas and are
consistent vidr the flndings of . vast body of Hedonic
literatule. the leiqhbolhood attributes sucb
The
Public hoepiral and Public Palk has ^egative sign fr.am that
houle lent d€cleaoed as the dlstance to these attrrbute
irc.eased. Th€ study found that the valu.s and erplcted sigD
of stluctule and neighbolhood attti,bute3 iD open, clo.ed and
pooled serelag€
ln fou! nodels The house ftnt
Incleased by 3 percent Pe! squale yald opsn se{erag€ a!ea, 2
p.rcelt in clos6d and pooled serer.ge area. O! the othe! ba.d,
th6 pres€nce of the drr{ing lod increase tb€ house3 r€nt bv
26 p€lcent in open seu€lage ar€a and 29 pelc.nt in clos€d and
pooled sere!.ge a!€a. In cmpafi.on iith the open and closed
!e*.!age a!.6s, the av6llabilitv of the g.laqe incleared the
!6nt by only 1{ per.€nt {R3.3{5 per honth) .nd 19 perc'nt (913
pe! nonth) r€spectively. In th€ absenc€ of a garag€ facllitv
In open, cloled and Pooted 3et lage aca, households palk€<r
The distance lo the
n€rghborhood such a5 hospital .nd Publlc Park has a n€ga!:ve
Inp:ct on hous€ rent b€cause the!. is only on€ public palk and
tro pDblic hospitals tn the are. under studv. Th€ dlstaDce to
the Public Park and hospital ther€fo'' d€creaee the r€nr of
the ho$e in open soreraq€ ar€a bv 2 petc€nt and 3 porcen! per
!e3pecl-rely, uf le 6 percent and ? Pelcerr p€! minute
Gsp€ctively ln c1o3ed seeeraqe .!ea.
their eehicl.s on the 3tre.!s
the enviromental variables such a3 3.enic vie', 'hich
neasuled by existenc€ of sewelage svstem! ds disanenltv
hou3e has expected negatiwe siqn in
closed and pool€d 3€{erage alea but positive fo! op€n s.{erage
a!ea. The existence of sef,.lage sy5t4 dec.eased the hou3e
rent by 3 pereelt (Rs 309 pe! nonth) in closed and 10 p€r.ent
(Rs 5?4 pe! month) in poot€d sererage area. The studv found
that d|lmy fo! existence of sere!.ge eFteb in open 3ereraqe
.rea 1! positive but in.igntftcant !.ans that hou6ehold ale
not boiheilng lhe open sekrage 3ysten but are co.vonient tith
1t for dlaininq the hous€ seterage-
front or back of the
6.5.2 ribd.l 2 r
3
The
ai! quality, ehich
the
oP€n se{elage
13 neasuled bv the odour enanecinq from
eyst€G i.e. odour occasio'al has politiee
lign ln open. closed and pool€d eereiage at€a The lea3on fo!
positive siq^ of disanenitv i. thgt lrou!€holds are not
affect€d by occa3ional odour. tlirile the dlmv fo' odour arsavs
poored
1s n.qative and significant in open' clo!'d and
the tert in
sewerage area. The odou! alflvs in air d€creascs
pelcent
th€ opeD and Pooled se*€laqe areas bv I percent and 6
lnpact of odour
cLosed seHelage area. The !€ason f'r the less
is
tn cloled s€felag€ area a3 cdpale to oPen 3€relage area
{1rn
tha! the tnten.ilv of odour is dlr€ctlv plopoltionat€
dlstance. Itoreve!, ,1nd sPeed and dite'tion lncr€aee odour
lnten3ity ln the clo3ed se'€rtqe
functio! has siqnificant 'nd positiwe inlact frd
disdenities {hi1e negativ€ inPtc! frm an€nitieE on houle
sv3ten i3
value, Th€ studv found that distance to the seeeraqe
positive fhile the distance square i' neqatiwe rhich confim'
function
the Hedo.lc propertv hvpoth€sis The distanc€ 3quale
ts u3ed to e3tinate the point of flex shele the Grqinal
The di3tance
impact of dlsahe.lty becores zero, The lnpact of dirlance on
house varle i3 0.0a percont po! Gt€r in the openr 0.055
percent pe! nete! in c1oled and 0.03 Percent Pe! neler ln
pooled se{elage 6r€a. The house lent inclea3e. by R3.239 pe!
hundled leter3 in op€n sererag€ area and Rs 139 per hundled
neiels in closed sc{eraqe a!ea. Tbe thoslr found that dlstance
squlre funclion has th€ opPosit. siqn in the cr6ed !€{€rage
alea although ir iE not rignifj,cant. fhis n ans tha! hous€
rent in th€ clo.e<l 3ereraqe
affecred by the N.l. Iai.
6.6 D.ryr. !ff.ct
D,i'
signillcantlv
Dl.t !o G!.dLat of lda !rj.
on
stldies for ! single dis@nity slte genelallv use the
dlstan.e gladie.t tn order to study its eelf.re lipllcation!
at lte f1!st 3tag. of the Hedonic anarvsis.
disanenity in the Etudy alea is continuous in natule and
r€s€mbfes a highr.Y iith hultlple b€nds and blanches, v€
divide the continuous distance vallable ilto 36ve'al dilcret'
point!. Th€ dlstanc. divlsion t! Loo metels fo! each !1ng tn
o.der to *liMte the irpact of the s.rerage
The d@qing effect of the open scwerag6r i.e., Nala Lai/ i'
shoun 1n T.ble 5.4. The rent of the ho$e d€cleases bv Rs.
5613 in the open ee{€raEe alea rh€reas the dec'ease is Rs'
2543 in the clos€d 6ererage a!6a Hh€n lhe dirtance 13 le's
than 1oo mters. ?he nesative ilpact of ihe iala Lai i'
s'qnific€n! and much ntghe! in Lhe op€n seselaqe area 'here it
!s g.eater than th. avelage rent ln the sde a!ea, uhich ls
R3, 4s7{ per nonth. Th€ neqative inpact j' mrc tbatr the
average 4nt up to Rlng 5, i e , up to 400 to 500 netels The
!en! ol th. closed se'erage a!6a i3 advers.Iv affected bv
Rs.2542 fo! Rinq l rhite the.egarive impact on lent gladuallv
beconeS in!lgnit'cant oevond he dis ance L:nq
Hedonlc
of 300 to 400 meteis- The nega!ive inpact of th€ sererage
systen on hous€ rent in open se{elag€ a.e is significa.t !p to
500 nelelr, 300 mete! for cloeed and 400 neters aor pooled
The siluation b€cones son€uhat conrlex in analyzing th€ bad
odour on house rent because th€ Nala l,ai has different
blanches, tlence, as th€ distanc€ f!@ one branch 1nc!4see,
the di3raDce fron another brarch night begi! to dec!66se vts-
a-vi5 ! palticura. house- Thi! phenoenon lea& to a situ.tio!
ehere haldly any house is located beyord 500 netels of any
bran.h of th€ Nala lai in open sevelaqe area. HouseE b€yond
thls di!!.nce gradient ale very rar. in open serelaqe alea.
Ilhere63 th6 houses in closed !€v€late aiea are 300 mete! fa!
fron any bra.ch of NaIa !a1. Ho{ever/ it is aolth ootlng that
{he!e a house is in fa.t Iocared beyond 800 heters, it luffers
a signtflcant deging tuFact 1. the ope!, crosed and poored
attribute the neqative i4act of distarce linq
300 to the fact that rh11e a palti.ular house'j" @y be
locatGd at a dtstance of 000 h6rels flon the Nala lal in tlle
eest, j,t n.y b€ onty 200 metels in dlltance 1n the nolth. The
negativo iipact of a distanc€ !1nq of 300 to 900 n€!€rs on
hou3e !€nt is Rs. 5391 i! the open se{elaqe a!ea, ehicb is
hiqher than that for a distan.6 ring of less than 100 n€t€!s.
6.? coacl[.lou ud Polict, R.colarrtiou
The resutts of this study lrggest that the rent
the open s.r.!dge area is l€ss than the lent of hour6.
in
the
clo3ed seee!:ge a!ea, {hlch rupport the hypothesiE th6t
hou3enoldr prer- zrn'(re. ov€r dlseeniry.
indicate that households are ritlinq to pay a highe! rent to
lrve far from lhe NaIa l.ai,
The neqatrE irpacr of the
se'eraqe systen on ho$€ lent in the open sexelaqe are. is
tfice that of the closed rorerage area. Th€ n€gatiwe iipact of
the NaIa Lai on house ren! ln the open seserag€ area, flon the
100 neter division to the 500 net€! division, {as sinilat
shouing consrant neqative tnpact on house lent, {herear the
!€grtiwe inpact on house reDt in the closed serelag€ area
fall! by 50 p€rcent fron the dlEtanc€ gladi€nt of 300 netere
on*a!ds. Tbe inpact of rh€ dilarentiy of NaIa r,ai on house
rent becomes 2ero in tbe pooled seve!a96 alea at a distance of
[ala Lai b€cane the deposlt point of ho$ehold serelage ln rbe
ea!Iy eiqhtie3 'he. the then existent se'.!.ge sy3ten f:iled
th€ neede of the groHing popularion of the city.
The mtflnctioning of thg s€uelage trearnelr planrs a1s6
se{elage ritErion.
Therefor€, a properly
functioning 3ere.aq6 tlea!!6nt plant and tie insrallation o!
sere.aqe pipes in th€ op.n sererage area ,ou]d charg6 the
nature of Nala lai flom a disdenity ro an amenity, If Nala
Lai is u3ed only for rain drain and cary household 3ere.ag€
after tleatn€nt rhen the ncqarive impacr of Nala tai b.cde3
ze.o tben rent of house! in hundred ner€! dlrtanc€ ling
t.cleased by Rs. 5512 per nonth tn op€n and Rs.2542 pe! nonth
a. clo3ed seweraqe area,
The tlat€r and Sanitatlon Aurlrority trlAsA) is charglng
a
diff€rent srab rate of yar€! and se{e!.ge (tablc 5.5)
ac.oldlng ro the plot size of the hous€, the se{e.age rare 1!
50 pe!.eDt less than rh€ rarer !at6s. world a.ntr propos€d
sevelaqe taliff dn rhe bagis of cosr 6nd b€nefft.narysis and
the fiqules ale tess than rhe
The .slitrates of
tut.n D€velop(ent Bank, from a household sulvey a!€ hiqhe! than
the torld Bart but ar€ clos€ to rhe cur.ent
'wdxhrEgdd*.@gci{..12005
Thc atudy eltiMt€s the rillinEn !3 of hous€hold fo! closed
!.{€!age syetem, vhich is eonsld€lably abov6 the !.te being
chalged by th. clelc body now. ?h€ study lound that tlle
hou.eholds !r€ !..dy to pay tlt !.c!aq€ t.litl .qq.r3 to the
eater bill. socvot thee is n..<l to inc!€.s. th. r.ter and
.euerage tallt! .Iab !ate3 i... rpploxi@tely ?0 p.rc.nt ft@
90 to 300 .quale yard aDd 36 p.lcqnt to 300 to 600 squale
The .tudy strongty suggested th.t rlllihgre$
pay fo! the cto..<t .ererag€ sy.td .!e elFral
o! hoqe€hold to
to th. f.ter
lates ald h.Dc€ th€ r.tes @y b. levis€d to plovlde r€rerage
syst4 rh.r fut deftnltely help ID provldlng th€ r.v.tue blt
also incr€a..r th. c.pltal valqe of hou6e.
is ju.t one a.pect of th. ope! 3eE!.9. .y.teD, thich
the study €stl@i.d throuqh ! <lllcftte ealiabl€. Thc stDdv
ha! lot been lbl€ to in@lporat. the role o! ulnd lp€ed and
f,ind di4ctio. shen it con€! to the n€qative inPlct of the
odour on ious€ !6nt tblouqh !h. G.uesi.! di.p!!!ton. Thle
..pect ras .ddr.r!.d 10 next chaPt€!.
octour
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Chapt€r
7
7. Dispelsion of gDall
7.1 IntroCuctlon
rhe sensory systen of hlen ,orks as stgnat to any unusual change
io envirom€rt and provides essential info@tioo !o! taklnq
protective neasules. ttwan senses qather a large anount of
infotution but lihited dount ot info@tion is pa33ed to
corsciousness. (Nolletrandele, 1999), Any input !elated to our
conscious ls reactions to odou!6. cEN (1999) define the odou! as
an t'afq.holeptic attljbute pelcept.ible b! the oTftcEoty atgan at
sniftihq cettaiD valatile substahces". The rrsubscancea tn.icn
stiru-lace trte hman altactory systa so that a. odout is
petceived" ate nded odourants (fiangaltn€r et a.1., 1989).
rhe sense3 of smeu and taste Play an ihportant lole fo! the
plotection of body and h€a1th especially fot food 1ten3. The
sensee of odouls and taste ale diff€!€nt but odoulant Mv change
the chalacter of speciftc taste (DJoldlevic et al) cdau$ have
xbe apacity to chaDqe the 7oct7 envitadett atd are ate of the
leasons fo! air po)Tttiot in u!ba, areae (van PoU, 1991). odouls,
beinq a part of ai! pollution not only annoyed houeeholds to have
conplaint about enviloment but also decleases the vahe of house.
odour can be generated flon traste {ate! tleatheDt Plants,
composing ptants, renderinq ptantEr pape! nills, and tlvestock and
land fitt sltes. rhe thesis deal,5 uith the imFact of odou!
generated flon oPen serelage systems i.e. NaIa Lai on the property
value by using standard odou! dispersion nethodology.
?.2 Otf.ctioa
ceus are located at the top of lhe two nasal
cavities rhele larqe ourbers of different leceptols ar€ connectecl
to the olfactory butbs at the base of the b.ain. lt i3 found thaa
hunan olfactory systen ls fa! 1es3 efficient as compale to other
mmals. An olfactory epithelis surface area of 10 d'in hlens
can be compaled to 1?O d2 in doqs (Bea! et a.l,r 1996). The
olfactory recepto! cell 1s also le33 in hman. shle! et a1 12004)
etudied that 12 nillion olfactory lecepto! cells tn h|mns {hile 4
bil1Ion 1n bloodhounds.
The odou! receptors
Richald Aael (r99s) and Linda Buck (1996) found that receptor
proteins are hai!-llke cilla connected to each olfactory neuion.
There ale 500-1000 dlffelent qenes in hunan body to raise
olfactoly receptor protelns. The leceptor proteins ale respoFible
to seod the signal to blalo about odour and enable the blain to
diffelentiate differebt types of o<lour raqinq up to 1000 odours,
7.3 Gr..ou3 bl.ral.oa. .!d
Odout
Genelally gases ale genelated ir industlia1 as rcII as in
agricultulal ploduction. Agllcultu!€ activtty like vegetation is a
big source of qenelatinq anthiopoqenlc aMonia {hich @y cause
severe lnjuries near the source (Jeppsson, 2000). Methane and
hydrogen sulphlde are the co@on qases senerated in industlial
operation also affect the health of worke!. The o<tour gedelated in
fam and poultly houses not only affect wo!ke!'B health but a]so
have neqatire irpact on ploducts like neat, nilk and egqs.
7.4
Odour
U..rur@nt
odour observations in the beighbolhood can be heasuted by
agglegatiog the annoyance of tbe household ]iving in the victnity
of the source of potlution- ueteorological ftodel u3in9 {ind speed
and direction noasuled the odou! conceotlation in the
nelghborhood. A good odour heasuleftent process depends on the
control and enlsslon techDique (Nlersen, 1991; Nlelsen & Paln,
1990). The tntenslty of odou! is based on odour cobcentlatlon
whtch is linked rith hllmn lesPon3e to odour at the thleshold
Ievel. odou! thleehold is the lo{est detectable concentration
,hich is tolerable to hsan blalD. An odou! i3 a hirtule of
hundleds of diffelent gases Hhele each qas has its o{n hman odou!
thleshold. Tbe !6f.!ence qas fo! Eulopean odou! unite (OUE) is nbutanol and 1 ou./ni lefels to the concentration o! 40 ppb n_
buranof by volse (cEN, 1999) .
An annoya.ce flon odour variee Mn to mn due to differeht
sebsitivity but odour threshold tak6 lnto account the average o!
nedlan sensitlvlty for gauss distlibutlon, The huian pelceived
strensth of odou! lntensity cy be eapless 1n loqalithnic
expression o! by Poee! function. The late of change oE o<tou!
intensity is not sde for aU t}?es of odouls. Hoteve!
ploasantness o! an odour is explained by odou! hedonic tone
(tlanilton
&
A!o9o,
1,999).
7.4.L
i3 olfactomete!, ,hich contain
sanple of odour material. the olfactonete! 13 observed bv
panelists until th€ odour conc€ntration is diluted to a threshold
tevel. odour concentratlon can be explessed in frultlples of a
ce.tain reference gas concentration {1ike,40 PPb n-butanol = I
A qeneral nethod of measuring odou!
Europe) or in sihila! terns of how nany dilutions
takes before it is .o lonqer detectable (thlesholds level, oDT)
OUE/n3
in
tt
1.t.2
During field survey, the heasurenent of odour concentlation is
qenerally tak€ place by tlained odour pane]s. These panels rhen
nove tovards or away froft the odolr soulce note the value of odor
concentratlon. value of odo. by panels is at or erceeding the
threshotd 1eve1. rhe theeis used group of enmerates (pane113t)
for notlng the odour intenEl,ty at the soulce of pollution 1 e.
Nal6 La!. _'e s_a Es ror rhe odour inr€nsiEy.rr as fo lous
Table Scale
Threshord
( 4ry
fo! odor Intensity
r!rrd)
?.5 Odou! Di.P€Elion
EFissions of odouls fron the odo! soulce ale splead in the forn of
pl,ae o! cloud in the neighborhood. The intensity of concentratlon
of odour in neighborhood is d€clea3es by the distance flon th€
odo! soulce. The,eather condition i.e. blue sky or cloudy vith
{ind speed and dlrection greatly affects the dispersion of odo!
plMe. It is assued that reathe! condition renain stable though
out the season hovever dispersion fray affect by the source type
e.q. ta]] stake and aiea of source.
The dispe!sion nodets are u6ed to estlnate the odor concentlat1on
at the receptor level or dovnwind flom source of potlution such 6s
iodNtrial plant!, land fitl site and vehicula! traflic. the
Gaussian frodsl ts the oldeet and host comonlv us6d model lor llr
pollution dlspelsiotr. It a3sses that the alr poltutant diePelslon
ha3 a sranclard no!M] dlsEllbutron vith h.an zero and v.llance
one. The modet ale hostly used fo! pledicting the disPerslon of
contiouous, buoyant ltr Pollution plunes originati.ng !!on qloutrd_
tevel o! .tevated eoulces.
et al, {2005) uses Gaussia! dt3pelston nod€l to esii@te th.
iopact air pollution tlom indu3tlial llve stocLs. lle not onlv uee
the concontlation intenslty at 3 lecto! Polnt but also use total
tj,ve stock reight to exPletn the thPact oD house v.lu.. the
Gaus3ian metho<t herp! hln to .stltrate th. Mlginal datuqe fron an
Ran
addltlonal livesioct.
the thesls estihate! th. itpact of oP.n serelaEe smll on
hou3€
p!ic6!. The potlqtion f!6 the eource i.e. 'Nulla Laj' ls
continuous o! 1lne soulce and unltom 3o vidd speed alonq rlth
vi^d dilectton.nd distance frd the soulce affect the Pollution
lev€I. To catcu1.t6 the di6Pe!3ioD oa odor Geu3sjaD hodel dovelop
by Tulne! i5 used for the conceDtration at recepto! lev.l. the
llov oa serelaqe vol&e 13 atso uses as ploxy !o! the odor le!.r.
Thele ale dlff.lent hodele lo! continuou3, buovant al! potlutlon
ptNes an.t the nost challenglng task Is to find the value of
stenclald deviatlon of lecePtor flon the source po1nt. Th. theejs
use rhe oodel p!€sented by Turner {19691 because it gives the
standard deviatton chart accolditrq to the etabilltv conditlon of
arhosphere. Th€ hodel assse3 that atnosphelic Etabltltv i3
udlfom thloqghout the layer, turbulent <tiffusion i5 rand@? and
the deglee of dllution of the €fftuent P18e i5 invelselv
propoltion.l to ,iDd
sPeed.
?.5 lt€oRticll tiod.l
rhe Gaussian nomal equatioD i5;
'[*)']]1..'I it+]'ll
. ta!,2,8, = dotrrind concentlatlon at ground leeel q'h-l
. e - enissloD late of pollutantE 9.s-!
. dland d, 1s the .tandald d.vl.tion of the Plme conceotration
. u= Htnd speedt n.s-'
. H= h + Att, tl is the value fo! th. etlecti{e 3tack he1ght i5 the
su of physical stack hetEht (h) and the pluc llse aH.
Equation 1 desclibes th€ odor dlsPelslon Pattetn a]ong three
dinensioB: tro holizontll dllectjon!{x and v) and a veltical
directioD (z) 1n the heiEht of lesidentlal
house3.
sinplify equation 1 ,1th tho as3@Ption that
resldentla1 height is unifom rhlch t! 6lso ln ou! th€sis
Ran
et all
(2005)
therefole equatlon 1 nov bscom.s.
;l*)'ll
The value
of
d,and
d,is calculated by the .tabllltv condltion'
the
7.? Atlbility co .Etj.on.
In the absence of measured data, dispersion coefficients (ot and
o!) aie tt?icarry estlmated as a function of distance, atnosphellc
stability and sulface loughness. Atrc3phelic stabilitv - is
describe<t by 6 stabiltty classes indicated bv a thlough F in Tab1e
1 (Tulner, 1969). stability ctas3 A represents a verv unstaDle
atnosphele and is chalacterized by ]alqe ntxinq heights stabj'llty
class F is the most stable atno6Phere and hae a seII nlxinq
heiqht. SLdbiIrty ctasses betHeen A and E represenL increasinq
levels of atFosphelic stabilitv. to! etanPter class D leplesents a
neutlal atnosphere, class B is hodelatelv unslab1er and class E i3
sliqhtly stable. The stability classes are as3igned based on the
solar ladiation level' anount of cloud cover/ and uind speed as
defined by categorres l thlouqh 5 tn Table l Gen'lal descrlptions
of the atmosPheric categotles are,
clear skie3, solar altitude gleate! than
deglees above the ho!izo.ta1, typlcaf of a
1:
60
afternoon. velv convective atnosPnere'
2:
3:
suN€! dav wilh a fe{ broken cloude'
A sunny fall aftelnoon, sude! dav rith bloken lor
clouds, o! 3lme! day 'ith clear skies and 3ola!
al,tltude f!o{ 15 to 35 degrees above horlzontal'
A hostly overcdsr nrght or a 'rnler oav
A cle6r night
rith ninict cloud cover'
fo!
In addition. class D, a ^eutral atnosphere' is recomeDded
overcaEt condltions .turing day or niqht.
ft bL
lho.Ithclo tt$Iuq
ots...
.td qt sotL! {t!tmt,
1969}
?.8 tliae goutc. Poltutio! Lod.I
Nala lar
the tbesis tlies to caPtule the lnpact of odo! from the
pollution
in Ra{alpindi citv on house PriceE since the source of
land fiII
ls not poiht soutc€ as in the case ot fam house or
biased
site, hodels Hhich hale been used fo! Point source sives
source nooel
lesult rbenever used for Iine soulce nodel The llDe
genelaIlv used for
is slnilar to transportation nod€l thich are
tlafIIc Pollutton or nolee'
coletant aoct
tle assMe that the pollution ftoh the Nala ',ai is
concentration
unifor[ for the di3persion of odo! the diffeleniial
of the lIne
at the teceptox o{ing to the differential elenent
(which can be tleated as Point source) i3 floh eq 2 asr
l*]|"'l {*l'll
since d,and o.is constant lith lesPect to y, eq can be lnteglated
ove! the finite lenqth 1in€ soulce (!I,I,s) ood€l and rritten a5,
,,,,,
=
#
l::
.
*,1-;t;)'
]t
stre r=-4
By substitution B iD equatton
rtx,tt
=
K
r;;hl
1tz
4. th6 lesllt is
I a'l .*olTr",
the equatlon 5 ca! b. uitEen ts,
kt.s2f
z,'',,=ft51"'d+l
^"
"
Jz"
rlheleq,q i3 the
Gausslan
Bz
distllbution lunctlon evaluated at
ald Bl lesPectlvely.
?-9 Dirtt t.l'o! corc.stE tl'oD 't B'a'gtor
the GaGsIa! puff nodel behaves 'eII
atnosphe!tc con.titlon. the dlspersioo
the functlon of tEavel distance flon
the recepto! I€veL.
82
Softvaxe has been used to calculate the dotniind odo!
concentlation, The nodel tas developed bv Ransdell et aI 1994 It
iE a laqranqian trajectory, Gaussj an puff atmospherlc disperston
nodel that includes deposltioD and depletion_ The rodel tras been
frequenlly used to plovlde leasonabte estlMtes of atnosphellc
concentlations. deposition and doses rhere litrdted infomation on
ropog!6phy and fetrology is avallabre.
The value of lo,ando,) has been used in the nodel afte! conductrng
The
RATCHET2
several experine.ts in the 1950s and 19603' The basic disPer3ion
P6rdete! lelalionshlPs ale
(
d'(x) = a"o-'
|o'lX' =''(xl'\\I"
+
)
)'
"(x
the distance floF the lelease pointr in netels
a function of stability class
b., .,(t c' - !s.tl@! ot 't'blllt!' 61s' a<l dl'tttna
constants
0.9031, av, az,, bz aD'l cz are empillcar
and
are dinensionless; cz has djnenslons of netels;
dimensions of 4d.Go-rdal and hd,!a ) , !€specttvery.
t.9.1
!lti.!|tion U.tbod
of odor eFitting
the nethodoloqv fo! estinatinq th€ concentlation
on the lolloting
flon the NaIa lat at the household level is based
. Div€lsities th€ Nala l,at a3 a conbinatlon of
Point Eoulce tepeated bv 50 feters'
. ?he study has u3ed the ertrene left position on
frofr each hoEe to calculate drsGFce'
Nala i-ai
. The study used the botton left side doGin on
rY' cootdloaEe
house hold to calculate the 'xr and
and
The study has used the langraqion Patticula! dlspersion model
because NaIa lai ls a continuous tather than point of area
palticula! nodel is rePresenting the pa'ticles of
aI! (oclo! in this case) trhich {ou1d be slnulated bv
liberating fluld parcels afte! everv 3 hours for a total
duration o! one hout.
the metroloqy data fo! the nonth of septerbelr october 200?
is used fo! running the node]
ln o.de! to tran3Port the particular in donain' the study
al
us€d obselved nean {ind. the concentration ol odor
leceptor leveI is freasured accordtnq to the atnosphe!ic
(unstable to
stability conditions such as Patqual a-F
Lanslagiab
of turbulence palanete! ear neasuled bv
Llfe time and location intensitv ta6 taken ft@
The value
such eddv
published
(HANNA 1984)
literature coirespondlDg to the relelence
houses i5 neasuled Dv a
The intensttv of ser€lage odou! at
nenberE oach nercer
gloup of panelist consietinq of file
in the arr
quotes the value of snell intensitv bv sniffing
lor at l€a3t
Lai' tb€ 'ind velocity
vle assme zelo stake heiqht for Nala
fron the
is less than 3 nil€5 pe! hout' and flor of sas
severage sFten i5 2065 n'hr'
7.10 a4)i!Lc.r Dl.4)'rtio!
E
&alc lro&1
lnPact of se{elage odo!
the objective of thesis i5 to esti@te the
lnten3it / ac e'ch
on house lent Lhe!efore concenrrari
usinq F.arcHEr2
is neasured th.ough dlspelsion hoder by
estinated for each malr'er
soft{are. The hedonic price function is
i.e,
open sererage and closed sererase area and than cort,ine the
to hous€ stlucture.
netqhborhood and enviroment are jdentical for each harket The
frodel and its descllptioD is as fouos,
data fo! pooled Mttet.
?he variabtes related
ll.r)=d,+ ptx,+ p,xt+ p'x'+ pJ.+
p.x5+ p6xr+ p1x1+ AX'+
p'x'+ pixb
?.10.1 v.rlrbl€ DoscliPtio!
ndt ol hout. (!r): htorfrtion on nonthlv lent
cotlected fton each house hold. The Imputed ient of
fron tenant and o$e! occupie<t hou3e of onlv ground
drelling is collected and confirm the acculacv
through property dealer'
5t4ct!!. cb.t.ct li.tica ol loute
r4. of r4.. (&): The age of house is neasured veals'
in squale vard open
Pl,ot air. (&) : The alea of house ie neasured
the house is used
as cell as coveled alea of the ground poltion of
for plot size. The plot size in thesis alea is cal ted "Ma!Ia"'
{here one l.larla is equal to lo squate va!d'
valiabre'
Bdl Bod (!3): Bed roon of the house is a disclete
valiabfe
D!.ri!E Rod (&) . Dta{ing 'oo& of the house is a dumv
the household use the room
aod proxt fo! drauing roon is used rhen
used for sleepinq
only ro! guests and visitots and is not reqular
and care was Gde
E.tb !!@ (!!). Bath loon i3 a d1sctele variable
and
tbe actual fisure there the house has attached
to calculate
separate bathrooms
ll.I.ei!io! Lu!g. (&) :
is a dffiy variable and lt is
consider as a place rhele household mehbels sit or ratch TV.
cltlgE (:?): carage avallabllity in the house is a dLmy va.iabte.
The qaraqe space for at least one ca! is considered as qafage.
!.n (&): The availability of laun in flont or back side of the
house is a dlmy variabte and cale was made fo! considering the
space where at Ieast fou! chailE can easlly ptaced,
TV rounge
Di.t.b{ s.t N.igbborbood Ch.r.ct.rl.tiot
Dttto@ to io4rit l (l!): Distance to nea! Public Hosplrat i!
n-nLLe by -srng any mode of r!ansporr !as collected for each
i.r l,!bli. P&t (I!o): Distance to Public Paik in ninute
usins dn' node of Lranspolr Has collected fo! each household.
Ditt$o
by
aovi.ao@t l vr.i.bl.
odo. co€.tt tid
: odor concentratioo at each house is
estinated by using the GauseiaD Disp€lsion Model "RATCHET2" in per
cubi. nillinete!. There 6!e thiee atnosphe!ic situations i.e.
(z!)
stable, neutral and unstable, Therefole tbe thesis esti@ted the
inpact of odo! on house lent fo! each stability class sepalately,
7.U Result3 lnd Dircurlio!!
7.U.lBstjr.t
d ht !.ity of Op.n E.nErg. SraII
estimted intensity of open eererage snell i. shorn in table
4.2. The ninimm value of estinaled intensrty of oPen seserage
systen in unstable air condition is 12 n'h'and naxinm snefl
intensity is 13296 nrh'rlth nean value of 489? nfh'. The nean
The
value of estiR.ted smell intensity In neutlal and gtable al!
conditiob5 ls 20482 n'h'aDd 14968,1 m'h'' lespectivelv. the nean
value of estihated smell intensity In neutral alr conditionr is 4
tine6 to unstable ai! conditions. Ito,ever the nean velue of smell
intensity in stable ai! condltions i5 10 tlne to qnlteble ai!
Eslimal6d SnEil Inteosity
t500
,u)l)
3500
3@
2500
'1
2000
1500
t
t00o
!
5lto
!
0
0.0 l.o 2.0
3.0
a,0
5,0
a,o
7,0
!.0
0,0 10,0 ll.0
12.0
Di6lanco
Th€ glaph of eetih.t6d sreII iDtereity shots that value of
estlEted snell lrten3lty declease. as distance to Nala lai
tncleases. It elso shoes that the estlmted 3nel1 int6rsltv reach
to threshold level at a distance of 0.1 kilorete!. the lesurts are
eihila! to the distance gradient functione tindIngs.
?.11.2 cosE.htao! ol ?r.dl'ct d .nd tttt rt d Odout
lnt !.Lt]'
The co!reration fratrix of predicted and esti@t€d open se,erage
6yEteh 3h€1I irtensj,ty is giveo in table 7.1. The lesults sho{s
that predlcted and estihated s6ell are Poeitivelv correlated and
siqnificant at one pelcent level. The esti@ted smell intensity at
stable, neutral and unstable ai! conditionE ale sane because tbe
snell intensity in neutrat ai! condition Is 8 time nore than
stable air condltlon and smell intensity in unstable ai! condition
is 43 tines nole than Btabte air conditlon. The e6tlmated and
predicted snelt intensity of open serelage system i5 negatively
colletated uith dlstance to soulce. Houever, pledicted snett
but estimated
inrensity is not significant to distance to Nala
'-ai
snelf intensity is siqnificantly co!related rith distance to Nala
7.
11.3 R.gr..rioD lrdy.i.
rhe explan.tory varlable3 shor slgnlticant lesults and they have
the eipected signs. The age of house is not significant; hosever
the expected siqn is negalive means that lent of the house
decrease rith the iDcrease in aqe of hou3e. It is obs€lved that
nost of the houses have !€gular lenovation and tmPtovenent
thelefole age is not significant, PIot slze of the house vhich is
neasured in square yald j,s posttive and sigtificant at 1* level.
Nunbe! of bed roons, dlartng loomr TV lounges, bath loomsr llarases
and stole ale aII siqnificant at 1t level of significance. The
bedrooh's cupboalds ale slgnificant heans that household are
{illinq to pay [o!e for bette! int€lIot. ?he dlNy fo! lavn and
galaqe is significant at on€ Percent significance level,,
Th€ nelghborhood att!ibutes inclease the marqinal willingness of
household to pay frore. Facillty of publ1c hospltal and park shovs
negative siqn neans that as the distance to the facllity increases
the rent of the house uill fatl,. The *ey variabl€ in the hedonic
price lunction ls the odo! concentlatlon or odor intensity at each
house is slqoificant in the study alea means that higher tbe odor
intensity 1o{er rill be the house !ent.
the €stimtes show that impact of odo! concentlatioos has
siqnificant on house rent for stable, n€utlal and unst.ble
atnospheric conditlons. The odo! concentlation declease the house
leot by 3t pe. cubic niulfreter ln un3table. stable and natulal
ai! condttlons. It is found that neutlal atno6phelic condition has
qleat€! negatj,ve effect on house rent than neutlal atd unstable
?.12
coacln.ior .!cl Polict' tt.celdrtlo!.
th€ pap.r tries to eati@ie the ifrpact of seHelage odor on
house
lent tn Ra{alpindi city. t{edonic plice Fodel is used to estiFate
the lnpact of se{elage odo! on house Plices eith the heIP of
Gaussian dispersio! oethod to estiGte the Pollution concentlation
at th€ leceptor (houees). It i5 tound thEt the intensitv of open
sefe.age snell through Gau33ian nodel aad pledicted lntensltv of
snell thlough gloup of panellst are highly cotrelated.
at thleshold ]evel ln pe! cubic miuim€te!
can be used !o estinate the v€tfale analvFie and second staqe
hedonic price oodel for dehand estimtlo!. the estiGted !.suft
used onty th€ kinds speed but unable to incolpolate the {1nd
The odo! concentlation
left the 16pact of {ind dilection for future r€sealch
for better ideotification of odot concentlation at tne recepto.
tevel fo! denand eEtihation and welfare 9a1n.
The study
ch.pter I
8.
Conclusion and Policy R€co@€ndltiona
This chapte! gives a brief sumaly of the results of genelat and
specific conclusion3 of the study. It also providee
lecomendatlons for futule lesealch.
lts expenditure on housiDg and
vithin the bDdqet to naxinize
urllfty. Th€ structure and the lntelio! of the hous€ plays vltal
role in declslo! cking. The house ehich te netly constructed o!
hae undelgone najo! alte.ation in the folm of chip3, tiles and
lood {ork vould dra{ mole money in the form of rent as compaled to
a simr.ar hous€ u-thtn the see locarrl/,
The household spends najo! sbare ol
plefers to avail Gai,mum tacitities
The thests found that neighbolhood attllbute3 such as super
na!ker, bank, echools a^d co11€ge3 do not have siqnificant impact
on house lent because households have nunrbe! of options klthin the
locallty. Xorever, Public Park and Public Hospital3, rhich are fer
ib nuhbers, have significant ihpact on houss !e!t meane that rent
of the house declease as the distance increaseg.
The location disdenity such as open s€welage sy.ten i.e.
open
nal,i and nala declea6e the rillingness of househotd !o pav nole
rent even though the lnte.ior of the house ls good.
lbe hedonic property nodel does not use soclo econohic valiable in
the first staqe hedonic analyEis. The studv found that socto
economic variable has indilect inpact on the decisions of
hou3ehold. The descriPtive statistica r€veals that household in
educated, business mind and have
closed seielage
Eha1l fanlty size. Ho{eve!, the households In open seuelage area
sel! employed and haee larqe fadlly size The
descllptive statlstics sho,s that educatlon of sPous€ of head has
have Iess education.
siqniflcaot Inpact on decision about
house 3election.
8.1 Conclu.torr
Fin objective ol thls study lE to evaluate the ihpact of
sfrett flon open seretaqe systen on house rent by using hedonic
property vatue hodel. The data ras coltected flon 1000 househotds
in the nonth of Auqust-Septenber 200? thtouqh a field sulvey. The
sudey "as conducted in area3 ,ith open and closed se,elage
system. since the latio of area {ith oPen and ctoEed se{elag€
system alea is 70:30 reepectively. Thelefore, ve hav€ selected 701
households flon open s€telas€ sy3ten area rhlle 299 households
fron closed eewerase 3ystem atca. rhe households have be€n
selected thlough a stratfied landoF sarpling plocedure. In older
to evaluate tb€ lnpact of sell fro! open seferage syet4 on house
rent lolloring thlee dlffelent techniques have been used in thls
The
1. The pr6sence of snell
2. Distance flom Soulce of shell
3. Dispelslon of snetl
Eo! each of the apploach, legle.sion anatysis has bcen used to
estiFate the f1lst stage bedonic price function vith respect to
snell fron N61a l,ai.
8.1.1
P!..u€
of ltr.ll
h thiB
approach binaly variable
system has been used to detemine
binaly valiables are,
.
.
Presence/abeence
ol
for
the idpact
nali in
se{elage nara in
open se{elage
Presence/absence of open
snetl,
froh open serelage
on house rent. The
Pre6ence/absenc€
of
open serelage nala aL back
of
hosue
Smell intensltY occasional
Pe!sistent/intensive
sme11
!€su]ts of the eEtinated lodels ale as follo{,
. Tbe existence o! open nal1 ln front of house decleases tbe
house rent by R3.612 per nonth.
The
.
.
The exlstence of oPen se{elage DaIa in front of house also
decleases the hou6e rent by Rs.?60 per nonth.
The household ,ittingness decleases by R3.204 per nonth ,he!e
the shetl intenslty is alrays at a 10t siqniflcance lever.
. For occasional snell intenslty, the rtllingness fo! the
househoid is decleased by Rs. 139 Per month.
4.1.2
Di'rtec. llo aoqo o! !b.U
To esri@te the impsct of smetl flom NaIa r,ai, the distance
gradlent function bas been used. The distance qladte.t function in
neter fo! each household, fxom Nala tai has been calculated by
using the GPs instl$€.t E-tech. The catchnent area of Nala lai is
?3.6 lnrand passed thlough enti.e city. rhetetole cfosest Point of
NaIa lai in any dllection has been selected. I. this apPloach the
study u6e t{o continuous valiables i e
to NaIa Lai fron €ach household rn neter
Dietance squale to Nala lai from each household in rcters
Distance
The Eecond conponenl (distance Equare) 15 incorpolated to
dete.nine the nonlinearity in th€ impact of distance from the
soulce of sne1l. The disdenlty in this study is Nala Lai
therefole the xorkinq hrpothesls of the theeis is that value of
rent wtII incr€ases vhen distance fron Nala l,ai increases. However
the impact is non ]inear. diatance squale i5 used to
culvature of the function and the value tem.
The
results can be sLlmarized a3;
The distance to NaIa lai inclease the house lent
percent per meter in the open severaqe area and 0.065
per mete! in closed serelage a!ea.
rhe house r€nt incleases by Rs.239 per hundred nerers
serexaqe alea and Rs 139 pe! hundred neters 1n
The rent
of the
house decreases by Rs. 5613 per tronth
in
the
open se{elage area and Rs. 2543 per rotrth in the closed
seeerage alea vhen the di3tance to Nala Lai ie Iess than 100
The negatlve iFpact
of
Nata
lai reMlns slgnlfLcant
up
to
400
The neqative inpact
threshold dlstance of
Inpact of NaIa Lai becones siqnificant rhen the distance
300 h€te! because a house rhich 1s
located at a distance of 800 nete! fom the NaIa !a1 1n the
uestr it hay be only 200 metels in distance flom Nala l,ai in
8.1.3
Di.p.!.ior ol btt
rn this apploach smell cobcentlation at receptor level o! fo! each
house is neasuled in per cubic millin€tei which is genelating from
Nala lai. RATCHET sof!!a!e 15 used to catcul,ate the snell
concentlation fo! each house. Th€ stability condltions for snell
. Stable ai! conditions
. Neutrar ai! conditioos
. unstabre ai! conditions
releats th€ folloving resufts;
. The iFpact of coocentlations of snell on house rent tas
significant fo! stable, neutlal and unstabte atmosPheric
The @del
.
.
The neutral atnospheric conditlon has greate. negative ifrpact
oD because the uind sp.ed. tehperature and hwlditv are
norffi1 ,hich dispelse the 5nell al a far djstadce.
The odor concentration declease the house rent
by 3t pe!
cubic nillineter in unstable, stable ahd naturaf air
. The estimated and Pledicted smell lltensitv at househotd
enanatinq floF Nala rai i3 higblv co!!etated in stable'
unstable and neutlal air conditions
a.2 Eo!'iot' R.co'ldrtio!
the local autholitv i e RatalPlndi Deveropeent Autholitv
not onlv r'c!€ase
inproves the existinq eerelaqe system it rill
the caPltal value of the Propeltv but a16o lnplove
urilized Lo qeneraEe Lhe
The u!ILlnqness of rhe housenold can b"
rhe recomenda!ions ror
!evenue fo! LocaI adninrsLtafron
Asencv are:
Raralpindi O€Yelopnent Authoritv/ flate! :nd sanitation
If
se{elaq€
cullentLy {AsA is chalqing sot of {at'r late to
and
!a!iff. It can inclease the se{erase late equat to !ate!
sanitation taiiff
rate
. The tariff can be increased bv ?0 percent of serelage
fo! 90 to 3OO squate vard alea of house'
squale
. rhe tate can be incleased bv 36 Petcent fo! 300 to 600
Yald alea of house'
out of
. tlater Fete! ale installed onty fo! sO'0OO houses'
in rest of the nouses'
212,oOO houses In3tall {ater oete!
.
Do not dispose sereraqe rater into Nala lai
.
lnstallation of serelage pipe lines in
without
open sevelaqe a!ea.
8.3 lutua€ ac!.ercb
odou! is just one asp€ct of the open seeelaqe systeF- rhe Fajor
sholtconlngs of evatuatinq the open seeerage systen smell ar€:
. Lack of p!op€!L' sc]€ pLrchas€ daLa.
. lack of @tlological data at sanpfing points.
. rack of data lelated to smell lntensity.
. lack of tabolatoly facllity fo! smelf intensity.
. lack of computer softrare for handling Iine soulce pollution
Bence, the follo{ing hethods are lecomended fo! evaluatilg lhe
impact of soeU on ho'Ee rent
. Quantitative neasulenent of sneU by usinq tab facitity such
as olfactoFeter fo! snelf intensity callbratlon.
. the leasulehent of sneLl intensily aor dorDrald and up,ard
dire^- on from Lhe soulce of poII-tion.
. oua1 heasurenent of snell concentlati,on i.e. hwn Panelist
through electlonic nose.
opinion and
. Correlation of dietance dilution of snell rith ,eather
. Chenical ploperty of seselage rate! in norul and lainy
. col,l,ection of data flon two dtfferent malLets {ith
honogeneous characteli.tics i.e. flor tro diffelent cities.
. Panel data for estinating the denand function fo! velfale
The future research can exterd the vork in th€ fouorlnq
. second stage hedonlc model.
. Ihpact of Nala lai on health and heDce hedonic vage nodel
. Use of tine soulce Gaussian dispelslon sotttra!e tike calI,
puff fo! incorpolating rind dhection fo! smell
corcent!atlor.
o. Pollakows*l (1911), 'Econonlcs valualion of
sholeline', ?ne Reviei at Econdics and statistlcs 59.3: 212-
Brornr G. M. and H.
. cameron, T.A. (20061, 'Dilectlonal hetelogeneity in distance
profiles in ltedonic ploperty va1ue3 models', ,raurDal af
E vltonnettal Ecohdics and Mahaq@eDt 5!t 26-45'
oubin, R. A. (1998), rP!edicci^g house p!rces us!n9 mulLipte
listings <lata'. ,Jauraaf ar Real Estate Fi"a,ce atcl E@n@ica'
lt{l). 35-59.
Elbir, T,, Dince!, F,, and Uuessinoqlu. (2001), ' Evaluation of
dlound a neat
necsLled and predlcteo odor
packaging and lendelinq ptant". Jouhal of Envlromentaf
Enqlneeling Scietrce,volme 24. Nunbe! 3,
Fo11ain, J. R. and Amanuel Jinene. {1935), 'EstifratiDg the dtund
for housinq chalacteitstlcs: a eurvey and clitique', Regiona-l
scierce atd vrban tc.ttuica lt(1): ?7-107.
Fleeman A. M 11L 11993) "The Mea6uienett of EnvilonFent and
Resouice Values, lesoulces fo! the futuler Washington"
F!ee@h, A. U. (19?9), 'Hedonic plices, ProPertv values an.l
neasulinq envilonh.nta1 benefits: a survey of th. issues"
scandihavian Journal of Ecoh@ica 81: 154_171.
Gayer, T. ,t.. r. Hanllton and Il. Kip viscusi (1999), 'privat€
values o! risk tledeoffs at superfund sltes. housinq narket
evidence on learnins about ri3k", Re!1e* ot Ecoh@ics aDd
statistics a2: {39-,451.
Gregory. R. Mr aad V l( Smith,199o), Market S€qfrentation and Vahinq
A,n€nities {ith Hedonic Models: The Cae€ of lta2ardous Haste
sites,tr Journal of urban Econonics. 28: 223-242.
Grilich€s, 2. (19'71), lon an rndes of Quality chanqe'. Joulnal of
the l\nerican statistical As3ociation, 56, pp. s35-48.
rla!tuns, J. 1198?) "?entative calculations of gaseoue emissiols
fron piq houses by tray of the eahaust ai!" In: volatll€
Enissions fron livestoc,< Falninq And Sewage opelation6
edited by v.C. NieIsen, .t. H. voolbutg and P. L'Itemite
Ploceedtngs
1937.
r
of a eolkhop held at qppsala, svedeD,
10-12 June
and Beth llitson, (2002),'EEtinatlng the connectlon bet,een
locatton and Plopelty value' Journal of Real Estate Practice
and Educatioo, vo1.5, no.1
Janet E. Kohlase (1991)r"The rnpact of Tolic Waste Sites oo fiousrng
values", Journal of Urban Economics30,1-25.
James,
Khan,
s. A., !. Gutie!!e2.and E,M. Mayerhofe! (2003), 'Technical
asslstance to t\e -qlan c PepuoI!c oI PaLrstan for p-"oa- ino
the Ra{atplndl Environnental Improvement Plolectr, Repolt
No.rl\R: Pak 3?003. Asian Developnent Bank,
K1eL K. A. (2006), 'Enviromentat contaninalion and houee varues',
Faculty Research series No.06-01, oepartnent of Ecooohics,
colleqe of the Holy cross, flolcester. liassac6r5ett5, usa.
(ieI. K. A. and K. T. ucclain (1995), 'House prlces during sitinq
decision stages: the cas€ of an inci.elator from rMor
through opelations" Jatrhal ot E vilatuehtal EcaDanics and
Mataqqert 24. 24L'255,
xinnald, 9l. N. and M, B. Gectler {1991), lThe €ffects in
residential real estate plices lron proximity to plopelties
coltdinated rith ladioactive Mteliats" Real tetate Issues
F.rr / tilt r 1991: 25-35.
Koh1ase. J. E. (1991), 'The inpact of toxlc,aste slte3 on housing
values', Joulnal ot Utbat Econa ic. aot l-26.
lancaster. J (. (1966), 'a nev apploach to consume! theolv ,
Jautual ot PallEical Ecalany 1at 132-51.
[ofstron, R
E,
(2002), 'Oualitv of life in wages and Rents''A
Journal of Pollcy Developn€nt a.d Research.Vol.7,l
rocal
12006), 'ttouslng Is3u€: global aod
property
persPecttve" PleseDtation at the Intelnational
uaheood, R, z.
Exhibition and conference,
7th
JuIv 2006, Karachi
Expo centre'
p Thorsnes (1992), 'Se]ectlon bias and
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McM1l]an,
D,,
R Jarmin, and
EcoDonica
3lt
213-244.
lichae1s. Greqory R. and v. Ke!.v Snith (1990). 'Malket
se@entation and valuins deDities tith fi€donic oodels: the
case of hazaldous {aste sites', JoD al of Utban Eco'@ics
2at
223-242.
Multv. M.N., Gulatir s c; Banerjee,(2003) a ' "tledontc plopeltv
prices and valuation of Benefits flom Reducing orban Air
Pottution 1n India" SANEI ,orklng paper
NeIson, A. C., J. Geneleur and M. Geneleu* (1992), 'P!ice elfects
of landfills on bouse va]ue3', Land Econonica 6'('): 359-35s'
(1932),
'EstiFating denand tor Product
chatactelistics: coment', Joulna] of cohstuet Researclr 9{2):
2L9-20.
o!fo!d, s. {1988), lvalulnq location in a! ulban housins market"
in Proceedings of the 3td Intelnational conterence on Geocohputation, university of Btjstol, Bristol' u K
Patmquist, R.B. (1992), 'valuinq locatized extetnalities'
,
'JouthaJ
3rt
rI992),
'A note on Lrdnsdcrlons cosLs, novinq
PaImquisL, B,B.
costs, and benefit neasules', Journal of 0rban Econohica
af utuah
Ecahonics
32t40-44.
s9-6s.
(2000)' 'House Plice
Dynafrics in Munbai', 1989-1995, RURDS vol 12. No-2, Julv 2000
Polinsty, M. A. and S. shovel (1916), rAnenittes and ptoper!v
va1ues in a hoder of an ulben alear, Joutnal 0f Pubtic
Piyush,
f,
anct
Hifoshi Tieari;lliloshi
5t 7I9-L29.
Populatlon census FePorE
Econovics
{1998),
Haseqawa,
DePa!
ent of
census,
Reichelt, A, v. K. (199?), 'hpact of a toxic uaste supelfund site
on proPelty valuesr, ..pPraisdl .tour,a l 65(4): 381-392
Ridke!, R. B, and J. A. Henninq (1967), lThe dete@inants of
residenLial prope!ty values HiLh special reference Lo ai!
246porlution', The Aeviet of Econ@ics atd stacist'ic5
'9:
251 .
RIzvi , zaiqham llahfrood,Chaimn flBFcr "Housing i3sue: Global and
I,ocaI Perspective4, presentation at Intelnatlonal ProP€rty
Exhibltion and conlelence, 7rh Julv 2006. Kalachi expo centle'
ploduct
Rosen, S. (19?4), 'fiedonlc p.ices aDd iDPliclt Nkets:
dlfferentiation in puie colPetitio ' The Jottnal af
Palitial Ecod@Y 42.1: 34-55
solid {aste
sarka!, U.' Bobbs, S.E. (2002). "Odou! from nunlciPaI percePtloD"
(Ms{! Iandfills: A studv on the analvsls of
EDviroD- Int.27.655.
{20021'
selqio, Batalhone, Jorge Noqueila and Bernaldo Muelrer
and smelf
'Econohics of al! pollution: Itedonic plice rcdel
consequences of setaqe treatnent plants in urban ar€as'I
Depa!;nent of Econonics fiorLlng PaPei No 234' Univelsitv of
B!aslliar B!azi1
smolen, G. E, GalY Moor and v. c. la{rence (1991) r 'Econonic
leal
effects of hazaldous taste taodfills on surrounding Ohio
estate values in Toledo, ohio' . Research Repolt No. 44'
state onive!Eitv, ohio. osA
rEstimating the
sor H. M., R, Y. C. Tse and s. canesan (1996),
lnfluence of tlansPort on house plices: evidence fion l{ong
(onq', Journa l af Ptupefty valtatiot & Lvesttent 15:1' 40_
Thayetr M. r Heidi Albers and l'olteza Ratetian (1992) ' 'Thea
beneflts of leduciiq exposule to taste dlsposat sitesi
Hedonic housinq vatue apptoach', The Jatthal af Real Estate
Reseatcb 1l3l
|
265-242.
tB., B. 1. c. rod P. B. D. t ?. (2000), rtLatultng !.sld.nttrL
ptop.rty valuas ln ltoDE rlong" PtoPatty ,&D.g@.nt Lr'gr
356-374.
Iuh.r, D-8. (19?O). rotlboot of AttorPh€llc D1.p.!31on E!tbtt!8.
aP-25, o!f16 of Ai! Plogralt, 0.9. &ttltorrclt.l Plot€ctlon
rg.ncy. F..{!ch ttLtlgl Pa!k, trorth c.!olln!. P. 81.
Xillln.on, R. K. (19?3), rL@B. P!!c.. lnd th. n.tu Gnt of
.rtem.tlt1e!', l!. lcondlc Jo!!@l 48.19! ?2-85.
,abal. ,t. a. .nd K. A. Kl..l 12000), ,8!!hating the.Leand !o! 11!
qurllty ln lour 0.s. citl.r,, Lrd ac@ulct ?6(tl! 1?4-194.
Aplrendix 1- T.bl.a
Table 3.1
Sanpllng st!ata framework
Moe
L$s1h6100qu@y.rd
s;De B!,alpindi
Table 3.2
d$
210
sql@ Frd
housins cen3ue
for
sanple poj.nts
oPen Sewerage Area
S.No
9
2
3
t2
t!
42
5
6
t8
l5
l6
8
Table
I
2
l
3.
3
sanple Poinls
for
l5
Closed Sewerage Area
SL D
Bl@t
50
N
7
3
s!
E8|6r
Table 4.I
Desc.riplive Sta!istics
0.t5
2
0.J,
0.51
I
2t7
ll.2t
tx
D)l
l].??
t3.3'
lI
3
lr-tt
1t.33
Table 4 .2
Descriptive s!a!1s!1cs of Estimaled smell
Intensrty
Table
csr
4.3
DescriPtive Slatistics
oihMhord
I
lt
2l
22
lJ.9
23
Table
4.4 Descriptive Statistics
Tab.Ier5.I
Regression Resulrs (chaPter 5)
(0.r3)
il.rr)
{1.31)
(2.53)
5.r2)
J.32
o.ll)
o6l)
(0.73)
cl.a2)
(-lJ5)
c0.92)
-l]3.34
l-r,27)
tr,3,l)
4.72)
cr.9t)
0,1o
6$ m
noor6.
-oroL
.'ngdlrdl6srorFdrrrly
6!9m
tt12)
Estimates of sedonlc Regression Analysis of
Closed Sererage Area (chapter 6)
Tabl€ 5.2
bt
(7.5)
(2.9)
nrwil3t@
rrr7.44-.
L.s
Lie&
0.@2... 16.?4!1.
(6.t
(7.6) (6.6) (1.6) (6.6) (3.1) (7.0)
0.003... Ll.?6... 00t3..! 54217... 0.091..' l't3.711. 0,o2'r!
(rJ)
(2.9) (r.9) (3.0) (r.9) (rl)
{l.l}
0.296I. rr2?.93.r. 0t 3..t r06t_9... 0.137... 1113!2111 O29}r!
(3.D (6.r)
15.9) (r.0) 6,9)
C.E 6.7)
0.rIr 723.56i1.
(2,r) (2 5)
i2,6) t:2.5) 12,7) (r.3) lr,t)
0.0r4lr
o..)
p.o
36t.45...
oo9rrii $2.r4r.r 0.092.*
(3.3)
(3.3)
0,191... 370.7,r... 0,19r'! 939.9r.'. 0206.I
(4.6) (2.3) (,r,6)
0.060 507.16 0.0t6
(0.3) lr.0) (0.7)
t?.' (r.6) (3 2)
0.0J6... 26.65...
0.0) (07) (0.0)
599.93
-13.26
cl.4)
332,76..1 0.09tIr
p.6) (r.0) (1..) o.9)
0.006d. -20.$..r
(4.r)
0006,i,
cr,?) c2.3) cr.4)
c2.9)
(5.2)
a0.021
ca,o)
-s2.9tt.! 0,007... _43.9t4r 0.007... -3695... odt(.
c3.1
(-]t
(-,
0.4)
rl
cl.l, cJ.t
(e7..r roe) 193.1) (l t
(c?
l)
0.62l
't
(2.3)
5)
(9.3)
(r r)
134.9 73... 531.jr11 73)r'r
(L'
r.lr)
10 15)
. lr) x rev.l
(0
Table 6.3
Hedoni.c Regression Analysis
(open & closed) seserage Area (chaPte! 6)
o3.t)
or.0
" (A
(6.'
'itor
519.323..' 0.113'1t
(6',t
oo
D
of
5lo.3l7'r' o r1a"' tl63rl"! oll5r"
(6.s) (rool (63)
o0)
ot)
(2,3)
(2.?)
(6.3)
(ll)
(.].l)
ci.4
ca.5)
(.5.4)
(s.n
(.5.1)
c3.l)
Q'D
1.6)
ffi
"'l:1,'L'll:'-,^i:ii'",",iift i;;":''ii;;:i;"ji'
"""'"'''
Table 6.4
Damage
Effect by Nala Lai (chapter
t2.52)
t4
c2rl)
1i2,59)
c2.0D
(-2,03)
ct."')
(-1.r,
({
(4.63)
6)
t6,21)
{-3.?l)
G2,73)
cD
ar.3r)
o.l!)
t0,t)
c1.35)
J391.667rt' -l.l46Ll"'
0.0000
-., 61"'i e-*,
0.0000
0.0000
0.0000
0.00@
0.0000
"qn!rr-N
!o PaY
SeHe!age Tariff rates and tiillingness
(chaprer 6)
Closed Sewelage Systen Per nonlh
Table 5.5
for
HMiis upir
25
2t
s*.ehcldB,"k
l!
Table
E!@lad scu
1.1
couelation Matrix of Predlcted
Es!imated smelL lntensi!y
and
i!6iry a
o!
Table:7.2
Hedonic ProPerly Price Function
(chapter
-.cGLddrr,s,6@ird.o0lLdodtdl
i-Tit 6 r...)
denotes
?)
4{)€ldir 2 Figure.
of rll. lli
aignrE 1.1
liguli 1.2
s@.
fiLn S@y p[@
Aurd-S.D*
XXt
(a.nl'pindl.)
tiguE 1.3
ryp€ of
Eigu!.l. {
S@.:
FiLd
slfty
Dhoro
Ausuts.phbd
r|ll!
Nal,.
2007
lai
tl'$!r. 1.5 gqrrllg Pol,at! t.btooab Coogf. bP
soutce:
s.telllt. ciec t!@
ai$E. 1,5
Gootle @p 2007
x.lt !.a !!d lou..hold r.D
bge.d
r0
om soule
estruibn jn s.Ptdb.r-auqu.t
200?
Paq€ r03
-
.f Ir4
tlgure t.?
9.!.I1it€ vi.r of Ll. r..i .sd lou..bol&
!tgu!€ 1.4
!tr1r r.r! ?olstt lor Di4'.ltror
J
!.*?,"*l
jald
sdc:
CPs
t'r"FP
2001@
P.i6 d'e8 ulcY Aug'd-s.i.obd
.1tstp
tdG)
Al4)endis
3
QUESTIONNAIRE
for
HOUSE
IMPACT OF OPEN SEWERAGE SYSTEM ON
R.ENT IN RAWALPINDI CITY
By
MUIIAMMADIRFAN
,"""#.ff"y-f;ij#"ffi.f#" SCIENCE
C-?/1 ISLAMABAD
Phoner +92-51'9252853
il;x;s;*.ry"t'u'*,i*:!ry.:,r$i#d':THil
finm"*tlt*:'"'Wf-*l*-**".*wg
SURVEY DATA
SLl.
Ad&e$ofHoN.:
SI.5. Blocti
SL?. Nheof EDMctutd:
SL8. Nme
Sl.9
of C@.dinaror
Nmeof
Sl4disr
Sl.l0. D.k oflnhricwi
Not : Ur.
rpprcpdt
.ode tr r.rperert c.& it th.
q!6tio! i.
not
.ppticiblq uc
9
|n
rn.
l.
G€trenl Infomation
2.
l.
HeadofHoGFl
SPoe ofHed=2
D.ughtq / sn=3
Mothn / Falh.r-4
Sisr.r / BllthF5
Gr.!!d Farhd / Moth.F6
2.
3.
Livitrq Preferetrce
k R.wdpi.di you N3tiv€ Tom?
(lly.s sp ro Q , 5) Y#l
NF2
If no, *tci,o! mign|e ro
Rrw.lDindi (in ye6)?
Ircm wtich Prevbce yo!
Pujab=l
SindF2
NWFF]
Bal@hbta!{
(go to
a.
rcxt
seli@)
what wa th€ Mjor
Abroad=s
'!en
for
lob=l
Hindu=3
B$ir$=2
Edeati@=3
Fdily DirulF4
Rajput--2
Butt--3
5,
ls this
hoe
(dF
b you Ndiv. Hous?
sp to
dr.did) Yrl
NF2
6. If no how l@s
?. wi@ w@
tuF=8
Kiy&i=9
=E
'ou
tou
liing befor
tnis
S.eMot la= I
olhsMohda= 2
our olciry = !
8.
SiBiti
haw ban livitr8
Ab@d = 4
Why did you l.a!,! you old how?
R6t bem. high=l
conFaci ma!F2
Construdion dan€d in old houF3
Build oM hou.F4
W.t€r sbolrg. / qqlity =5
F& fron work
pllc6
Mdiagc / @.getion=7
Pdr l.w &d ordF8
B.d avitumdF9
Seial IsuFlo
O0q=ll
3.
Dwelllps Geperal
Itrformetlon.
r.
2.
what is tou pes6t
Hous€
wlrAl is dE
Min const&ction
ChiF = I
Mtbkr' !16=2
(fowMsoloQ#3) OwM= I
T@r =2
c.@t=
If T€mi, who b you lhdlord?
bFL hdividul - I
R€l.tirc= 2
h.nd
3.
L
(mpyirg
loterior
whar is th.
2. Wl[t is rh. tuin @.slructio
E tqirl of both@n / w8k@n?
=3
Til.s = I
ChiF - 2
sucr@ ofyod
cdmt = l
Kdha = I
Sdi Pea -
olhd =4
2
Pd.=3
a.
5
Wnx L th. @ of hoB?
!vi.r is th. plor size of you
6.
How nany sto.id
3,
tou hous
a. Dcs you hou.
?.
whar i3 mtal valw of Srodd poftioi
tou how
How
3
Oihd= 4
h8ve capel for,
of
in m{rk.l?
bsy bm tou
9. Doe rlE hoE
Ho@ co.sist ot
a
5
whlt i!
l[.
ryF of @il4ioD for,
haE gaftge?
Yesfrmtr
=l
Yeslor@=2
No= 3
l0 Do6 your hous hrE laM?
5,
L
Utilltv S.rvicer
Hos
oey
t!6
of ulihy
sdi6
y@ harc
Ncz
L
Do you
L
How
{.
tro you havc
ll.
ha* om utility md.6?
mey mobil.
us
Do
ay of tlc followiry atret
'od
@ in you
$6d@t 3ti6t ligbts?
Y.ssdicisl lshs = I
Yct-iFuftcienl lshs - 2
No'3
12.
Whit typ.
oftratlqn
you
NF
e
for
An tushenGl
lnecrs tPnF2
Mosquito Coil =3
tillr-4
El@lric
Ft
6.
Gmd.l infotution
on
op
L__G9!gr!u!&!ostloo
N€ishborhood
Water
rei
whar is th.
2,
How
t?e
tMy tin6
of*lId $rc.?
tou hav€ wat
7. Blrk
r
n
d.Fl
momirg
onlr4
Mmjr8 dd €QirgFl
10.
Cr
Ro6d
Wlic[ Eigl$odood
y@
lil.
tusr?
3, Wbl
is
ta
e@bg o.lF5
typ. of stolge?
FlooridlFl
R@fT.nl--2
dre
c.d. toh th. .lore lifl ofrielloftood
What is th. qulity of.i/ ottrosthd?
T
Kitcnm / Balh rub =3
Qlali1y of wat€r
*hd
you
@ivc?
vdy eood=l
Cooe2
Sad!ncd=3
Dtv
Nitbt
B.d=4
5,
Do you
fe
Dot
ey w.td
ItM5
sho.Lgc?
YEFI
(lf no so to Q # 7).. .No -2
6. lf y6, ho* Imy drt{ in 6 noniltt
r
7.
D@s
lDehdd rat
you
tho
srcr
8,
lf y6, how n&y dtt5 in a doith?
lto* do6 tu Holtelrld dispo*
By
Y6=l
8. If)tq
what is th€ typ€ of tr€atnol?
Fold cloth=l
9. whtt
g?e
cbldinc rau.rl=2
Ele.t ic
9.
For
closed Ndh = 2
Clo&dd tulh =l
No$|E =4
10. In
what b
fo.
I
Eqtrnent @st
puifi€tior p6 nonth?
rhe av€ra8p
wld
L If m, why did you nor F.ar lhe
w.td
12.
13.
wtat k
!v68s.
Aom oublic t D &d
lhe
days,
tlw bkh tine
Smell lnformitiotr
9.
L
Do you
Y€=
I
2
2.
(lf no so to Q # 4). ..No =
lf y.s, @ tou nnk the inimity of
CG:dY=l
Tine Consminr2
No ned =3
6iny
(hous) lh€ €xisdng 3ry@le
sysr@ ra16 to ddio !84 rin?
Ddibl8=l
10.
fel mell toh tou how
slt r bil (pn)
tube
Occ.siotul
AlqaYs
Ce
8.
l.
2.
l.
Sewerree & Srnltadon
mcll=l
!n [?
PE IrY oc[=]
P€I?
!l6gc oiltcI[@
whar h th.
opd ntli=l
sdi
nIF3
wht plEpoe tou lrsl lnc
p.iv!t. collector = I
TloM i! N.lla = 2
of6in ddin,od ho@
3- Ar
whal
tololre=4
v..y sood=5
no1
will novc out
ti@ @[ iitdsity
i5 hi€h?
Modi.Fl
D4Y =2
Type of S.w@gc syst@
(8o !o Q 3). -.urd.r
'
Type
E!6ing =l
=I
OD€r dlaiN - 2
86ud
4. whevd cmpl.ilt
ofop6 ew@gp srst m
Fb.l 3i& Nali - I
Fbnt dde Nrlr-2
wn r t,T.
Bact si& N,lt - 3
Nrla lai = 4
of roil€t is u$d by your
cotn4redbcl6€dwma.sl
emelcd b opo w@gF2
6'Mt d lo s€elic &trt - I
4. Doe you w@g€ Epl bl@k d?
Y*=l
(Ifno
3o io Q * 6). . -No = 2
ndy dlye in a month?
5. Iay6,hos
6. Does yor *wdge syslm
Y6 =l
(lf
no
&bQ
# 8)...No =2
5.
which hclor
seln
you sboul
R.latirc = I
Fridd= 2
Cu.ss= 3
No onlldnt = 4
irc|t4
the
sclP
wind A.ed=l
Wind Dl€ction=2
Dbi.@ro e|tlF3
6. l.
which s.slor
ffill
win b. high?
Exhme wints = |
ModF.r. winrq=2
Extrm€ sllmd=l
Modeate
sum6=4
tuiry
s.er
=5
Heslth
10.
rformdor
on
boukbokl
@db.r tbo
b.ve
dlrher, h€p.dtb
erc.
ID
Otner
ll.
12. c€rersf
Aw!ren6s
L
Do you
thbr st€r Punfistion
or aad
th*
2.
i!!sr!qs!i94-q-A$
E€$SB lboul ssh
.|Y=2
3-. Renaniond
3.
S*paA. in edibtior
D@g. i! siutiotr
No 6lta
Et
lin =r
lin€ =2
$rG3
Do not krow =4
Erehoic3
13.
Socio Ecopomic
whlt
is
vsrlrble
$uM
of I'v.lihood ofyou
hmilf
dqy a@ly bdb63 qh iMc ir lan 6 @nthr
3, Wrli is d a@ge monthly .xpadiiE of yoa hoe?
4. How Day dm6 slFlc tuily dining oul h ! nod6?
5, How IMy lime! vhol. f.hily ep6 0o picdc in a nodth?
6. Do you gd lls patd Gglbdri
2
How
No
?.
DG &y mdb6
of thc tlH is
ltmbq
of the
-2
hbtc
Y6 =l
8.
9.
14
I
llow d&h mrEy do you p.y for chditt in a notrb?
How Euch Zikot Fu p.id in lst t€ar?
Eouseholdlpformldon
Whrr is
l[.
&milv 3iz.
lNoof childm b.l@ l8Y6
I N.6fAddB b.tu6 l8 ard 65
No ofp.FoN ttore 65 yd
v6
NoofMdied@
lNoofadult *o*instde6
| \o ofmi elktns adull p.tsotu
3-
4.
what is lhc .dultion
*,Iar
ts the
l4l
of,
(c
cod.
oeupadod
l.v.l of,
6!6
ID
d€r)
|
I
|
l
|
|
I
|
|
I
|
I
|
|
|
H.ad S6K
i-_l----
oftead
Household.Genenl ltrformrtioo
t
TD
2
l
5
1
3
!0
ll
t2
tl
l5
s0d9ofHad-,
D.!l!E/ n=l
c'id Fdd
DauCr6-ii.lrf/
/ Morl'd
s'illr*
atuddruri'/
s
"
6
-
e
= r0
i':
M-l
a4
t:
l!!t
t
!5 E!
t
lr
tt
d
i8
F!
wrbr Quditrl4
cXt
ffornrtm