The externality cost of environmental (dis)amenities in the urban housing market: an emerging evidence from Pakistan

Rising urbanization on abiotic environmental conditions in housing units is one of the most severe difficulties that city municipality authorities face, all over the world. Waste production has increased as a result of households failing to implement waste management strategies that ensure sustainability. Thus, property values in the housing market have regularly deteriorated as a result of environmental (dis)amenities. The study examines the impact of a waste dump site on proximate property values in Pakistan’s twin cities. Using a systematic random sampling technique, questionnaires were distributed to 849 households. 35 dump sites were chosen from 100 metres to 500 metres. The dump sites were chosen based on their size and proximity to residential homes in the study area. The empirical results show that the distance between a residential property and a waste dump site significantly impacts rental values. Moreover, rents exhibit a negative relationship with increasing distance from the dump sites. Based on applied findings, more proactive enforcement of sanitary laws and regulations, such as removing all irregular dump sites from residential areas, is recommended.