Work

Determining the negative effect on house values of proximity to a landfill site by means of an application of the hedonic pricing method

Year: 2011

Type: article

Abstract: This study applied the hedonic pricing method to determine whether a disused, solid waste landfill site has an adverse effect on the prices of low-cost houses in New Brighton, a neighbourhood of the Nelson Mandela Metropole, Eastern Cape, South Africa. The results of the study show that the landfill site has a negative effect on New Brighton house prices. The average increase in house value is R36.00 per one hundred metres from the landfill site. This increase amounts to 0.44 percent of the value of a house per 100 metres from the landfill. When the change in value is summed for all the properties in the sample area (allowing for variation in value change due to differing distances from the landfill site) the total disamenity effect of the landfill site is approximately R1.4 million.

Source: South African Journal of Economic and Management Sciences

DOI: 10.4102/sajems.v12i2.280

Authors: Mario Du Preez, T Lottering

Institution: Nelson Mandela University

Language: English

Topic: Housing Market and Economics

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Sustainable cities and communities, Responsible consumption and production

Open Access status: gold

Estimated APC paid: $793