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15. Economics of Water Security

Author

Bhaduri, Anik, Dionisio Pérez-Blanco, C., Rey, Dolores, Iftekhar, Sayed, Kaushik, Aditya, Escriva-Bou, Alvar, Calatrava, Javier, Adamson, David, Palomo-Hierro, Sara, Jones, Kelly, Asbjornsen, Heidi, Altamirano, Mónica A., Lopez-Gunn, Elena, Polyakov, Maksym, Motlagh, Mahsa, Bekchanov, Maksud, Bogardi, Janos J., editor, Gupta, Joyeeta, editor, Nandalal, K. D. Wasantha, editor, Salamé, Léna, editor, van Nooijen, Ronald R.P., editor, Kumar, Navneet, editor, Tingsanchali, Tawatchai, editor, Bhaduri, Anik, editor, and Kolechkina, Alla G., editor

Published
2021
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27. Capitalised nonmarket benefits of multifunctional water‐sensitive urban infrastructure: A case of living streams.

Author

Akbari, Saloomeh, Polyakov, Maksym, and Iftekhar, Md Sayed

Subjects
PUBLIC spaces, HOME prices, OPEN spaces, HOUSING market, ECOSYSTEM services
Abstract

Living streams are an important element of decentralised stormwater management solutions. They are actively promoted due to their ability to generate multiple ecosystem services, including water quality improvement, biodiversity protection and aesthetics. However, a lack of monetised values of ecosystem services of living stream projects makes it difficult to assess the net benefits of investing in such projects. This study uses the hedonic pricing method to estimate the capitalised amenity values of living streams and other public open spaces (POS) in housing and lot markets for the first time. The study area includes two newly greenfield‐developed suburbs in the Perth metropolitan area. We find the positive impact of living streams and other POS on the house and lot prices. However, living streams generate greater value than other types of POS. Furthermore, the POS (including living streams) that support active recreation are valued more than basic POS without active recreation features. Finally, we observe, for the first time, that the benefits of planned but not yet constructed POS (including living stream) are similar to the completed POS (including living stream) in both housing and lot markets. This information is useful for policymakers and developers making informed decisions about water‐sensitive urban infrastructure. [ABSTRACT FROM AUTHOR]

Published
2023
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47. Local councils’ involvement in planning infill development creates value for the residents

Author

Polyakov, Maksym, Iftekhar, Sayed, and Fogarty, James

Subjects
Local government, Hedonic modelling, Environmental Economics and Policy, Urban infill
Abstract

The objective of this paper is to understand whether greater involvement of local councils in the planning and development of the infills generate a better outcome for the residents as reflected through house prices. The Australian population is growing at a rapid rate and is expected to double by 2061. Two main approaches to tackle increasing population are the development of greenfields at the urban growth boundary and densification in the established areas (commonly known as infill). Given the limitation of greenfields development, infill has become popular. Many cities and metropolitan areas have established infill target. For example, in Sydney it is expected that by 2031 60% to 70% of the new dwellings will be supplied from in-fill. Similar targets have been set for other cities, for example, in Melbourne 61% by 2051, in Perth 47% by 2031 and in Adelaide 70% by 2040. Given such high level of infill targets it is important to manage the process in an integrated fashion as unplanned infill development could induce loss of green infrastructure and natural waterways. Local Councils play an important role by working with developers to achieve community goals and provide more public benefits to the residents. It timely to know to what extent their direct involvement in infill and residential development improve social welfare. Such information will contribute to more effective implementation of the infill project through an optimal level of involvement by local governments. Our case study consists of the Cities of Salisbury, Onkaparinga and Port Adelaide in South Australia. We use sales of homes built after 2000 following a subdivision. We classify infill developments by the three levels of involvement of the local council into the planning and development process. The “limited” level of involvement from the Councils is primarily reliant on policies of the Councils’ Development Plans. The “preliminary” level of involvement is related to high-level land division design and layout outcomes, such as connectivity to adjoining open space, road network, stormwater infrastructure. The “high” level of involvement from the Councils may, in addition, include rezoning to enable specific development policy to more explicitly guide development outcomes or design guidelines for dwellings design. We estimate a hedonic pricing model which includes spatial and temporal fixed effects, house characteristics, and a categorical variable that indicates the level of involvement of the Local Councils into the planning and development process. The preliminary result indicates that the “high” level of involvement of the Councils is associated with higher house prices in comparison with the subdivisions with “limited” or “preliminary” input by the Council. These results demonstrate the value of the Councils’ more active involvement with residential development.

Published
2020
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