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IWP Research Seminar

Access to water, sanitation and energy as determinants of rental prices in urban slums: A hedonic price analysis of slum rental market in Dhaka city (Bangladesh)

This study applies a hedonic price model to estimate the determinants of rental values of urban slum dwellings in Dhaka city, the capital of Bangladesh and one of the fastest growing cities in the world. The study uses a representative sample of 588 households from 63 small, medium and large slums located in Dhaka city. A particular interest of the study is the relative values slum dwellers place on access to water, sanitation and energy. Controlling for a large number of house property characteristics and primary sampling unit (PSU) fixed effects, the findings show a significant positive willingness to pay for sanitary latrine, uninterrupted gas supply and in-house water point. Water facilities installed and managed by government agencies and NGOs which provide higher access to water in terms of supply reliability and shorter time to collect water (due to shorter queue), have significantly higher value than the privately installed and maintained water facilities. Interestingly, slum dwellers not only have positive willingness to pay for access to water but also for volume of water use. These findings imply that increasing slum dwellers’ access to water, sanitation and energy will increase social benefit although the producer surplus generated by higher access to public utility is likely to be captured by the landlords in the form of higher rental price.
Seminar Room 3-5 
Manasseh Meyer Building 
Lee Kuan Yew School of Public Policy
469E Bukit Timah Road
Mon 28 January 2019
12:15 PM - 01:30 PM

Dr Sonia Akter

Dr Sonia Akter

Assistant Dean (Academic Affairs) and Assistant Professor, Lee Kuan Yew School of Public Policy, National University of Singapore

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Prof Asit K. Biswas

Prof Asit K. Biswas

Distinguished Visiting Professor at the Lee Kuan Yew School of Public Policy, Singapore

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