ASSESSING THE VALUE OF ENVIRONMENTAL ATTRIBUTES AFFECTING HOUSEHOLDS’ HOUSING CHOICES USING A CHOICE EXPERIMENT METHOD IN NAVAB NEIGHBOURHOOD

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RAFIEIAN MOJTABA; ASGARI ALI; ASGARIZADEH Z.

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Journal: INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING AND PRODUCTION MANAGEMENT (IJIE) (INTERNATIONAL JOURNAL OF ENGINEERING SCIENCE) (PERSIAN) Year:2008 | Volume:19 | Issue:6 Page(s): 13-22

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Title

ASSESSING THE VALUE OF ENVIRONMENTAL ATTRIBUTES AFFECTING HOUSEHOLDS’ HOUSING CHOICES USING A CHOICE EXPERIMENT METHOD IN NAVAB NEIGHBOURHOOD

Author(s)

RAFIEIAN MOJTABA | ASGARI ALI | ASGARIZADEH Z. | Issue Writer Certificate

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Abstract

One technique that has been recently used to assess the value of environmental attributes is choice experiment method (CEM). CEM permits value estimates for different goods (services) sharing a common set of attributes to be pieced together using the results of a single multinomial (conditional) logic model. The CEM approach to environmental value assessment is illustrated in the context of housing choices by Naval residents in Tehran. A standard CEM questionnaire has been developed and completed in a sample of 200 residents in the Naval project neighborhood in 2008. Several log it regression models were developed in order to estimate the impacts of selected environmental attributes on households’ choices of dwellings. We have calculated the willingness to pay for environmental pollution, accessibility, security, sociability, neighborhood facilities and home facilities using house prices as a monetary value. The results show that except for the home facilities, all other environmental attributes have significant expected impacts on households’ choices. In the context of this neighborhood the results show that households would be willing to pay more for purchasing a house with less environmental pollution (noise and air pollution, more sociability, security, neighborhood facilities, and accessibility respectively. CEM is found to provide flexible and cost-effective results for estimating use and passive use values of environmental attributes in urban environment, particularly when several alternative proposals and attributes need to be considered.

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