Saturday, January 22, 2022

Valuing the Impact of Air Pollution in Urban Residence Using Hedonic Pricing and Geospatial Analysis, Evidence From Quito, Ecuador

This study attempts to determine the marginal willingness to pay for cleaner air in the Metropolitan District of Quito (DMQ) Equador by estimating the impact of air pollutants on property values. Spatial interpolation techniques portray pollutant concentrations in the DMQ.  A hedonic model estimates air pollution impacts on properties.  Impacts of three pollutants, (Particulate Matter-PM2.5, Nitrogen Dioxide-NO2, and Sulfur Dioxide-SO2) were estimated. The impact were statistically significant with decreases in property values of between 1.1% and 2.8%, or between $1,846.20 and $4,984.74 US$.
The most significant impact was from NO2 with a coefficient of ‒2.765, meaning that an increase in 1% of this pollutant will have a 2.8% decrease in the property price.  NOx is one of the very few air pollutants that people are able to perceive. This result is significant since the average residence value is 865.13 US$/m2, meaning a reduction in house value of 23.92 US$/m2. The other one is O3, which was also statistically significant, but only at 10%. The impact of a 1% increase in concentration of O3 will decrease the residence value 7.41 US$/m2. The other two air pollutants are odorless. PM2.5, had a coefficient of ‒1.733 and was statistically significant at the 95%  level. implying that an increase of 1% in PM2,5 concentrations will reduce a property's value 14.99 US$/m2. CO had a coefficient of ‒1,103 and was significant at 99%, meaning that an increase in CO concentration will reduce home value by 9.54 US$/m2
by Sebastian Borja-Urbano, Fabián Rodríguez-Espinosa, Marco Luna-Ludeña
Universidad de las Fuerzas Armadas – ESPE, Sangolquí, Ecuador
Corresponding Author: Fabián Rodríguez-Espinosa, Departamento de Ciencias de la Tierra y Construcción, Universidad de las Fuerzas Armadas ESPE, Av. Gral. Rumiñahui s/n, Sangolquí, Ecuador. Email:
Air, Soil and Water Research via Sage Publications
Volume 14; First Published November 22, 2021; Open Access

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