ASSESSING THE WELFARE IMPACT OF AIR QUALITY IMPROVEMENT IN JAKARTA-INDONESIA: A SPATIAL HEDONIC PRICE ANALYSIS ON THE VALUE OF PROPERTYArief Anshory and Budy P. Resosudarmo;
Padjadjaran University, Bandung, Indonesia
The Australian National University
ABSTRACT
Since 2001 Jakarta has been actively developing policies to improve its air quality. Most studies analyzing the benefits of these policies have been focused on the human health impact of these policies. This paper conducts a spatial hedonic price analysis on the value of poverty to assess the welfare gain of implementing air pollution policies in Jakarta. Results of this paper are as follows. First, air pollution is negatively associated with house value. Second, for some pollutants, these associations are strongly significant. Hence, third, an improvement of air quality does potentially improve the welfare of housing owners.
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