Professional Documents
Culture Documents
An Undergraduate Paper
Major In Economics
By:
November 2014
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CHAPTER I
INTRODUCTION
been true to their goal of promoting and developing sustainable and professional
waste management worldwide. With their strong vision of an Earth where no waste
nor pollution exists, ISWA provided projects that has proved that there can be a
cleaner and greener future for the whole human population. Solid waste has been a
big issue even before and a lot of organizations and government units have already
provided numerous plans and projects to temporarily remove the trash that has been
a big pollutant in the whole world. In a local perspective, the National Solid Waste
Management Commission (NSWMC) is present. Like the ISWA, their primary goal
is to help lessen the volume of solid waste (land pollution) in the country. NSWMC
is the major agency tasked to implement Republic Act 9003, the Ecological Solid
Waste Management Act of 2000, where LGUs act as an important aide to manage
controlled by real estate businessmen. The Appraisal Research Company in the US,
(Parker, 2014). These landfills may have existed before the operation has started or
Positive, because, this can be the source of income for some people and negative,
because, these can affect people living nearby. It can be health difficulties,
management. Seven of the largest landfills around the globe are: Great Pacific
Fresh Kills Landfill, New York, Lagos Dump, Nigeria, Apex Regional Landfill, Las
Vegas, Nevada, Sudokwon Landfill, South Korea, Puente Hills Landfill, Los
the average American produces about 4.4 pounds of garbage a day. This is
Indias waste is properly disposed of in low lying areas without taking any
considerable that there are certain positive externalities provided by these waste
lands in several ways possible. This idea is the primary drive of this paper; to
property values in several locations. The issue has been influenced by several
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journals, theses, working papers, essays, and articles on-line. One that shaped and
altered the ideas of what a landfill could do and cannot do has been presented
through several researches and articles posted on the web. Landfills in particular
have created negative effects on the environment, buildings and houses, and even
people. One main reason for the negative effects is landfill gas, which is produced
when waste breaks down in a landfill. The negative effects of land pollution has
already been in the populations mindset since the beginning of time, and one of the
main purpose of this paper is to exhibit the opposing effects of landfills, dumpsites,
In the Philippines, 97.5 percent of the countrys waste disposal facilities are
still open dumpsites, with 936 open and controlled dump sites and only 24 sanitary
landfills, or a passive rate of only 2.5 percent. One major reason for this is the lack
of financing (DENR) and everyone knows that land pollution is a huge issue in the
country especially that it can affect the citizens welfare, health, all in all, their
everyday lives. Landfills have led to some of the most heated issues regarding
pollution in the Philippines. While there are a whole lot of reasons for the intense
arguments that often surround landfills, dumpsites, and the like. One of the largest
is the combination of both the understood need for these treatments and the
willingness of one person to live near a SWM project, specifically near a dumpsite
or a landfill.
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One big issue before was the catastrophic Waste Mass Failure in the year
2000, where the residents near the Payatas landfill in Quezon City, Philippines,
killed at least 330 people (Stark et al 2009 p. 208). After experiencing heavy rain
from two typhoons. This is just one of the issues that might be experienced if one
carefully.
Compliance Certificate (ECC). Though ECCs are not yet thoroughly operational, it
is still expected to accommodate and manage solid wastes produced by the province
The main method for transfer of these robust wastes are through dumpsites,
landfills, and the like however there are high dangers in regards to this kind of
waste administration and the majority of its setbacks are the human wellbeing and
nature itself.
In 1999, San Mateo, Rizals landfill was forced to stop performing due to
certain problems such as public pressure, wherein several factors such as waste
trucks, junkshops or waste pickers affected the local communities. These effects
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may focus mainly on health issues due to methane gas being excreted by the wastes
in the San Mateo landfill and may create a huge impact in the near future.
Indang, Imus, and Silang, Cavite, have landfills and dumpsites that are currently
cost. It has been a common knowledge that if SWM facilities are present, the more
that the land will cost less and be unproductive. Considering the idea that some of
the residents still earns income through these landfills and dumpsites, it creates a
big question on how they can ponder on this issue whether being a cost (negative)
or a benefit (positive).
should be able to directly handle, supervise and manage certain polluted lands in the
country. The possible impacts on the areas property value or real estate value in
most cases, may vary in a good or in a bad way. This paper will be organized to
exhibit the different externalities that solid waste management facilities contribute
to do harm or to give benefit for those living near these projects. Also, this study
will help identify the ways on how certain individuals use these polluted land as
Objectives
quality can affect the property price valuation through the measures of these
variables. Furthermore, the costs and benefits of these SWM facilities for those who
Specific Objectives
3. To be able to present the costs and benefits of SWM facilities deriving from
Research Questions
2. What are the factors affecting the property value regarding the changes in
environmental quality and how will this paper be able to show its results?
3. How are they affected by these landfills and dumpsites negatively and
positively?
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Hypothesis
According to Kariuki, 2012, that there are several factors affecting the
property value and the growth in prices of developments, such as increased credit at
low interest rates from several financial institutions, the improvements and
construction of new roads and the new laws and policies in Nairobi. Therefore, in
this paper, other factors will be discussed to see if it will also give a significant
attainment, number of household members, years of stay in their current area and
their gross monthly salary and to prove that some variables will be proven
regarding the SWM within the vicinity and therefore has a positive effect on the
property value.
H3: The location of the property will depict a positive relationship towards
property will show a positive relationship as well against its property value.
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positively related, this provides the research with the following hypotheses
H5: If the households location are nearer, it is more likely to declare that
they are highly affected by the SWMs (health, way of living) compared to those
H6: If the property are built near a landfill or a dumpsite, the real estate
value or the property value have lower values compared to those living farther
H7: The policies affects the property value through the compliance of the
properties that present both questions and opportunities for real estate properties.
Basically, it is pointed out that despite the negative conditions that a landfill or a
and therefore,
H8: There are more costs than benefits taking into account their presence
how SWM facilities can either positively or negatively affect a certain municipality.
Throughout the study, information will be gathered through the respondents who
are currently living in these selected municipalities and how it has been affecting
their daily lives. The results and conclusions could help the local government in the
selected municipalities specifically regarding the policies present in their locale, the
public (residents) who are either benefiting or losing from these SWM projects, the
students, and for the future researchers particularly when it comes to land pollution
and property values, in order for them to have a clear mindset of what the problem
The local government can think of projects and new policies besides the
present activities and projects, that could help improve the municipalities way of
coping up to what they are experiencing now and with the long-term plans in the
future.
aware of their surroundings to clearly see the effects of SWM facilities that is
Also, for the students who are destined to become future leaders, public
servants, and a part of the population, and their awareness about this issue and help
And for the future researchers about this topic, this paper will serve as
reference for potential papers that has the same matter as this. Property values,
environmental change, and the possible impacts in a longer period of time could be
factors will contribute a big part of the paper since the primary goal is to achieve
property value of a certain location and these will help the paper identify the areas
According to the National Statistics Office, the area of Cavite has a total of
703,841 households with 23 municipalities all in all, but only 6 municipalities will
be chosen to have the interview conducted on. And these are the following:
Dasmarinas, Indang, Imus, and Silang, Cavite. These municipalities were chosen
since there were certain issues already present that is concerning on the issues of
land pollution and also the availability of SWM projects in these certain areas. The
respondents will be households who are already living near an SWM project even
before it started to operate, in order to know their value for the location and if it
really gives them a positive impact from then until now. The study will be
conducted from December 2014 to March 2015. Data gathering will begin on
collection of data will be observed. Some respondents might not answer some of the
survey questions truthfully due to privacy, security for their identity and such
factors that can affect them personally. Location is also a weakness in respect with
the researcher. Some SWMs may not be accessible due to areas security or the
location itself.
Definition of Terms
Dumpsites the location where garbage and other forms of trash are
management of all the processes for proper handling of these solid wastes.
affecting it.
affect the population. It also the condition of the environment relative to the
CHAPTER II
The first chapter discussed the macro and micro details about property value
(real estate value) and how environmental change can create impacts in the
households living near the solid waste management projects. It contained important
background of the study, objectives, and hypothesis, definition of terms and the
scope and limitations of the study. But with regards to the study and for it to create
a foundation all throughout the paper, the researcher must be totally familiar with
the papers theories and previous researches. To convince directness and for this
This will allow the researcher to analyse and give comments regarding the pieces of
literatures that they have fully comprehended regarding the concerned area of study.
The transparency of the research gap is conceivable with the proper understanding
of the scope and delimitations of the research. Using this chapter of review of
related literature, information and important points will be specified using the
previous studies. It will allow them to increase their knowledge about the research
and to attain at the right standpoint of this study creating a large impression
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regarding how land pollution have affected the different countries or areas
primarily divided according to the papers objectives given the following subtopics.
The cost and benefits of the solid waste management projects near the households
and how it creates an impact on the property value all throughout the years and even
the years prior to the SWM project. Also, about the culture of the residents living in
the scope of the study and how it was carefully measured through statistical
processes and defined afterwards, knowing the value of the property in the locale in
regards to certain environmental changes provided by the land pollution near the
residents.
mortality risks (Willinger, 2001). There are certain factors affecting the house price.
and environment (Kauko, 2003). This goes to show that environmental changes
creates a big dent and is a big factor for affecting the property value of a certain
residence. The best location to reside with a higher value is basically the towns
centre (Nelson, 1958). This gives the residents living near the centre the benefits of
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being near the centre of markets, and social activities. This provides a big
opportunity for competition as well. There was also some evidence that pollution
has a negative effect on house value and prices (Hamid et al, 2009). This is
population residing near it. The only benefit that can be seen will be the workers
that are attributed with the wastes a certain population produces, where these solid
practice types (Parker & Gentry, 2014). Where in the present state of the country
today, a lot of lands have been converted into subdivisions, neighbourhoods, and
commercial areas. This creates a benefit for those who are working in the real estate
field of work but at the same time, damages these lands and creates lesser territory
increasing. Commercial and domestic solid waste is a great practical problem for
SWMs such as landfills have been a huge part of a society for disposal of
wastes that are created by the same society mentioned. Despite improvements in the
material wealth of the nation, future generations will not have the same access to
environmental services (Garnaut, 2011). This serves as a cost for what the
community will be having in the future. Since all the land has been converted or
used for real estate, or used for SWM facilities, there might be none left in the long-
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run. This creates a dreadful impact for those who will be needing it in the future. It
would not be certain that the welfare of the future users will be much greater than
on the property market (Hamid, 2009). Therefore, this creates a diminishing value
for the property market. Sustainability should be improved through the means of
Quality of the environment is a factor that affects the values of land. Land
value does not only depend on the physical characteristics of a building but also the
environment that surrounds the building (Oloke et al 2013). Hence, those who are
living near SWM project or treatments really receives negative effects regarding
factors such as health, welfare and their ways of living. According to Oloke, there
are seven factors affecting property values and one of it was regarding the
environmental attributes (e.g. view from property, noise levels, pollution levels,
storm water). Thus, this gives the study a clearer perspective on how these
environmental changes will affect the residents residing near landfills, dumpsites,
and incinerators.
changes have affected them, especially in the long-run. It is of importance that solid
waste collected are properly disposed at designated sites in the city in order to avoid
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environmental degradation (Babalola & Busu, 2011). The ways of life in a certain
city or in this case, municipality, is greatly affected by how these solid wastes are
treated. Environmental factors should elude from environmental risks, one major
risk for improper actions in regards to solid waste is the way that it can negatively
sustainable economy which will generate more employment along with capability
to meet energy requirement of the people and reduce its carbon footprints as well
(Gakhar, 2013).
Damaging as it looks, the SWMs can still create a certain output, where in
this case biogas is created through an effective system that can help the
communitys way of living. Biogas is equal to the energy produced by half a litre of
diesel oil, it can be seen that not all trash are troubling. With more technologies like
this, it can help the welfare of the population living near a SWM system or plant.
methane emissions from landfills in developing countries now account for nearly 40
percent of annual global landfill methane emissions and are expected to increase in
the future. (Ayub et al, 2011). Methane can cause different types of illnesses,
mainly because methane is highly combustible and too much amount of methane
land pollution, as the number of dumps replaced by landfills increases, the volume
culture and environmental quality, while some gave indirect approaches that still
seems to give a large idea for the study. First, culture is defined as the beliefs,
1993).
The primary goal of any real estate businesses (property value) or house
those living in an area where environmental quality is pleasant the more that the
population living there experiences better observation of culture than of the others.
so regards the phenomena and people react to them in a certain way (Hamid et al,
2009). Somehow, property values and culture are correlated in variables such as the
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environmental quality present in their areas. Thus, these environmental changes that
concerns pollution may lower the values of real estate and people living before or
after a certain SWM facilities, may vary in their ways of life and their way of
coping up with their everyday lives. Environmental quality can be more fully
understood by making explicit the values people place on nature and the
The growth in property market has surprised many in the industry even as
interest rates increased at the end of 2011 and a weakening shilling and the
countrys elections (Kariuki, 2012). This just shows that in a community property
value can really change a populations viewpoint and be a big deal for their culture,
where in this case, in their local government. One problem still remains alongside
the research gap, given that most of the economists value these lands into monetary
parallels. The negative effects of air pollution, and more commonly the deprivation
expenditures for illnesses, lost wages, and averted expenditures to prevent diseases,
2001). People living near these pollutants can still value their houses and properties
even with the presence of SWM projects and sites near them. The proximity can
still define their willingness to stay, maybe because of their adaptation with the
culture even with the negative effects of these SWM businesses or if they want to
move out to a clearer environment that is a bit further from these landfills,
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measured, and it was separated into two major categories: reduced morbidity risk
and reduced mortality risk. As much as possible, real estate businessmen will not
entertain such issue because of the risks of losing income and can cause their
businesses to shut down, which can affect the people living nearby and on how they
live their everyday lives. Knowing that in general, SWM can mostly harm than
benefit those living near them, it has been a big part of their day to day lives, and is
considered a part of culture and environmental value. It can be seen that almost all
authors have agreed upon the idea that environmental changes create a huge setback
Like in the previous paragraphs presented, some parts have mentioned the
low interest rates from the financial institutions, improvements and construction of
roads and new land laws (Kariuki, 2014). Distinctive looking and conspicuous
objects can enhance the value of the area and affect investment efficiency
(Pawlicka, 2014). Hence, besides the replacing of land areas to SWM projects, there
are more factors affecting the value of properties or real estate areas that can create
The related literatures found in this research contributes more than whats
enough to provide the readers with the right amount of information as the paper
CHAPTER III
Theoretical Framework
characteristics or the value is good. The demand for these characteristics are
study conducted by Bajari and Khan (2007), the data estimates that the
heterogeneous home buyers value the various attributes of urban versus suburban
housing. In the Philippine setting, more people are living in the urban communities.
The valuation was estimated for square footage, the property lot size, the
Moreover, some objectives have tried to test the hypotheses through the
objectives presented in this paper. The argument that there are more costs rather
than benefits whenever a certain household lives near an SWM project or plant,
depicts the economic theory of value (Figure 1), wherein, households value some
things up to a certain degree. In the long run, the price of a certain good is presented
by the costs of production and the price of every commodity resolves itself into the
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sum of the natural rates of wages, profit and rent (Henry, 2001). Therefore, it
contributes a lot to the succession of a property residing near SWMs, causing the
value the properties based on what characteristics are present now. Therefore,
Conceptual Framework
It was mentioned that there could be positive and negative effects on the
location and the state of the given economy. These variables can affect the property
value and how people respond to these environmental changes. SWMs have
World Bank has created its concept on how SWM should be visualized.
Divided in to three basic questions with who, what and how, presenting a concise
idea on how SWMs should operate in order to retain the environmental value of the
properties right now, neither positive or negative, and taking into account, having
Demographics:
o Age
o Educational
Attainment
o Province of Origin
o Number of
household members
o Years of Stay
Environmental Quality
(current area)
o Gross Monthly
Salary
Location: Household
Economic State of the locale
Distance of
landfill/dumpsite
CHAPTER IV
METHODOLOGY
Research Design
This paper will solely focus on both quantitative and qualitative types of
research. The focus of this study is basically on how certain factors can create an
impact on a certain variable and therefore, will be measured through the following
types of research design. This study uses distance from the landfill as a proxy to
measure the negative impacts of the landfill on the values of surrounding properties,
and employs a regression analysis model that separates out the relationship between
property values and the negative impacts of a landfill, when all other things are held
One type of research design used is the causal comparative research design
for the reason that this paper attempts to establish a cause effect relationship in this
study and build a strong, persuasive, logical argument. Moreover, it deals with
variables that have already occurred or is already present. The most common
and t-tests wherein significant differences in the means of some measure (i.e.
Descriptive survey research design will also be used in order for the study to
be described briefly regarding the households who are going to take part of the
research and to further explain the importance of the present situation of the
properties near the SWM facilities by using sample surveys and questionnaires.
This research will focus on selected areas in Cavite where solid waste
Dasmarinas, Indang, Imus, and Silang, Cavite. These areas were chosen because
SWM facilities such as landfills, dump sites, incinerators, and material recovery
facilities are present and are already operating. Dasmarinas dumpsite is located
near barangay Salawag wherein a lot of residents are complaining about the smell
that can reach to a degree where they cannot withstand it. There is a landfill present
in the City of Imus, the center of the province. The Imus landfill is located near
Daang Hari (the highway connecting Alabang and Imus), near the famous landmark
protection of the towns natural resources and the development of tourism and
Sampling Procedures
n = N / ( 1 + Ne^2)
2010. Using the confidence level of 95 percent (margin of error of 0.05). The
sample size used in this paper will be at around 399.9482 or rounded off at 400.
systematic sampling, where the target population are arranged and is then selected
on a regular interval through an ordered list. This method will start at random and
proceeds with the nth element onwards. Where, n = (population size/sample size).
The methods of data collection will help draw conclusions from the data
gathered. The data will be gathered in order for the research gap to be answered and
in order for this paper to evaluate the outcome of the study using regression. For
this research, the method of sample surveying will be observed where data will be
obtained from Dasmarinas, Indang, Imus, and Silang, Cavite, for this to estimate the
Questionnaires will be used and tested alongside with interview questions for the
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qualitative approach of this study. Focus Group Discussions (FGD) will also be
conducted in the areas that are included within the scope and locale of this research.
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