Publication: Valuing Access to Water--A Spatial Hedonic Approach, with an Application to Bangalore, India
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Date
2010
ISSN
17421772
Published
2010
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An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This requires estimates of the potential benefits or positive welfare effects that may follow from improved infrastructure. In this paper, we take advantage of a unique geo-referenced household survey to carry out a hedonic analysis of housing values that explicitly accounts for spatial spillovers. We use this to derive an estimate of the value of improved access to water in the Indian city of Bangalore. The findings suggest that by limiting the focus to individual or private benefits only, we may underestimate the overall social welfare from investing in service supply. We further demonstrate how spatially explicit policy simulations based on these estimates provide insight into the total effects of targeted interventions.
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Publication Valuing Access to Water : A Spatial Hedonic Approach Applied to Indian Cities(Washington, DC: World Bank, 2008-02)An important infrastructure policy issue for rapidly growing cities in developing countries is how to raise fiscal revenues to finance basic services in a fair and efficient manner. This paper applies hedonic analysis that explicitly accounts for spatial spillovers to derive the value of improved access to water in the Indian cities of Bhopal and Bangalore. The findings suggest that by looking at individual or private benefits only, the analysis may underestimate the overall social welfare from investing in service supply especially among the poorest residents. The paper further demonstrates how policy simulations based on these estimates help prioritize spatial targeting of interventions according to efficiency and equity criteria.Publication Access to Employment and Property Values in Mexico(World Bank, Washington, DC, 2018-03)Location is one of the main characteristics households consider when buying a property or deciding where to live, since it determines accessibility to employment subcenters and public transport stations. Using a geographically-referenced data set on new housing developments, this paper estimates how households value accessibility in Mexico City. The results are shown considering road accessibility to formal employment subcenters (private accessibility) and distance to the main public transport stations in the city (public accessibility). The results suggest that accessibility to employment subcenters is considered an amenity for households, while being closer to a Metro station is perceived as a dis-amenity. Moreover, households located in neighborhoods with a greater proportion of informal workers and lower education levels give a lower value to private accessibility than households located in neighborhoods with a lower proportion of informal workers or in high-educated neighborhoods. These results are evidence of the existence of spatial segregation in the city, where disadvantaged households are segregated not only because of their economic conditions, but also because they are located farther away from employment opportunities.Publication Urbanization and Housing Investment(World Bank Group, Washington, DC, 2014-11)This paper provides the first systematic empirical assessment of the pace at which housing investment has responded to rising demand from urbanization. The assessment used National Accounts Statistics to build a data set of residential housing investment for more than 90 countries. The data set explicitly accounts for investment by households, the government, and the private sector. The analysis finds that housing investment follows an S-shaped trajectory taking off around per capita GDP of about $3,000 (US$2005) and tapering down at per capita GDP around $36,000 (US$2005). The analysis also finds that between 2001 and 2011, housing investment in low-income economies averaged 4.56 percent of gross domestic product and 9.12 percent in upper-middle-income economies. An important finding is that countries in Sub-Saharan Africa have housing elasticities similar to comparable low-income and lower-middle-income economies. In financing housing investment, the paper finds that developing countries tend to rely much more on domestic savings and government debt, whereas high-income Organisation for Economic Co-operation and Development countries lever capital markets by tapping foreign savings. Not only does excessive reliance on domestic savings and government debt increase the sensitivity of housing investment to the cyclicality of growth of gross domestic product, it also can potentially crowd out investments in health and education.Publication Leveraging Land to Enable Urban Transformation : Lessons from Global Experience(World Bank, Washington, DC, 2013-01)Around the world, in both developed and developing countries, policy makers use a variety of tools to manage and accommodate urban growth and redevelopment. Government officials have three main concerns in terms of land policy: (i) accommodating urban expansion, (ii) providing infrastructure, and (iii) managing density. Together, the planning for infrastructure and urban expansion, land use, and density policies combine to shape the spatial structure of cities. This paper reviews global experience on using land based instruments to accommodate urban development and financing infrastructure. The review suggests that urban transformation is most efficient when land markets are fluid, particularly when they are grounded in strong institutions that (i) assign and protect property rights, (ii) enable independent valuation and public dissemination of land values across uses, and (iii) enable the judicial system to handle disputes that may arise in the process.Publication The Morphology of African Cities(World Bank, Washington, DC, 2016-12)This paper illustrates how the capabilities of GIS and satellite imagery can be harnessed to explore and better understand the urban form of several large African cities (Addis Ababa, Nairobi, Kigali, Dar es Salaam, and Dakar). To allow for comparability across very diverse cities, this work looks at the above mentioned cities through the lens of several spatial indicators and relies heavily on data derived from satellite imagery. First, it focuses on understanding the distribution of population across the city, and more specifically how the variations in population density could be linked to transportation. Second, it takes a closer look at the land cover in each city using a semi-automated texture based land cover classification that identifies neighborhoods that appear more regular or irregularly planned. Lastly, for the higher resolution images, this work studies the changes in the land cover classes as one moves from the city core to the periphery. This work also explored the classification of slightly coarser resolution imagery which allowed analysis of a broader number of cities, sixteen, provided the lower cost.
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