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Measuring the NIMBY effect in urban China: The case of waste transfer stations in the metropolis Shanghai

Zhang, L., J. Chen, Q. Hao and C.Z. Li. 2017. Journal of Housing and the Built Environment 3:1-18.

Abstract:

China is experiencing fast urbanization and its urban citizens’ growing concern for urban disamenity has imposed a serious challenge for the urban management. This paper assesses the impact of a typical environmental facility, namely waste transfer stations, on housing values in Shanghai, China. Through hedonic pricing models, we detect an inverted-U pattern of housing prices around the waste transfer stations in Shanghai, and the maximum influence distance is nearly 3 km. We also analyze how the disamenity impacts of waste transfer stations vary across locations and differ with their own characteristics. The possibility of neighborhood sorting is discussed, but we find it would not be a problem in this paper. In the conclusion section, we discuss the policy implications of our findings.

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Keywords: NIMBY, Waste transfer station, External effects, Hedonic pricing

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